Demonetization of Rs 500 and Rs 1000 notes was the biggest buzz in the Indian Political and news arena. On 8th November, PM Modi’s announcement was a breaking news across India. The Rs 500 and Rs 1000 denomination notes were made illegal. The main objective of this move was to curb the black money, corruption and fake money menace. The aim was to flush out the black money stored in the form of Rs 500 and Rs 1000.
In a sudden decision announced by the Modi government, 86% of the cash flowing in the economy was declared as illegal. This disrupted the economic activities of Asia’s third-largest economy. According to an SBI report, on the day demonetization was announced, 17,165 million pieces of Rs 500 notes and 6,858 million pieces of Rs 1,000 notes were in circulation. Prior to November 8, the currency in circulation was Rs 17.7 lakh crore. It now stands at Rs 15.4 lakh crore.
Currently, the Reserve Bank of India is still counting the demonetized currency returned to it as stated by the governor Urjit Patel. The Reserve Bank of India is still not in a position to provide the exact amount of the demonetized currency returned to the central bank. Urjit Patel failed to give an estimate of the fake currency recovered while appearing for the parliamentary standing committee on finance on Wednesday. He also could not provide a date by which the Reserve Bank of India would come out with the exact amount of the money deposited, to the panel, chaired by Congress leader M Veerappa Moily.
Urjit Patel has clearly stated the panel that RBI was using 39 counting machines and has even hired seven more machines. The bank has even cut staff holidays and they are working “round the clock” except on Sundays to count the notes.
Patel and his colleagues have decided to provide the members with a written reply.
