Going by the objective that 13% of the money in circulation would not come back, should the Demonetization be deemed a failure?
The Union Finance Ministry has informed Parliament that Rs.10,720 crore worth old Rs.1000 and Rs.500 notes were not returned to circulation after demonetization. According to the Finance Ministry, when demonetization was announced on November 8, 2016, Rs.15,41,793 crore worth withdrawn notes were in circulation. The Ministry said that after verification and reconciliation, as of June 30, 2018 Rs.15,31,073 crore worth was returned from circulation.
The Finance Ministry was replying to the questions raised by BJP MP Subramanian Swamy about the return of money in circulation after demonetization. This reply shows that 99.31% of the money has returned to circulation after banning old Rs.500 and 1000 notes and just 0.69% of the money (Rs.10,720 crore) has not returned to circulation.
“Total value of the currency in circulation of the old notes of Rs.500 and Rs.1000 denomination that were demonetized on November 8, 2016, post verification and reconciliation, was Rs.15,41,793 crore. Out of which, the total value of the Specified Bank Notes (SBNs) of Rs.500 denomination and Rs.1000 denomination was Rs.8,56,445 crore and Rs.6,85,348 crore respectively,” said MoS Finance Pankaj Chaudhary in a written reply to Subramanian Swamy.
“As of June 30, 2018, the total value of SBNs returned from circulation is Rs.15,31,073 crore. Out of which, the total value of SBNs of Rs.500 denomination and Rs.1000 denomination from circulation was Rs.8,53,100 crore and Rs.6,77,973 crore respectively,” said the Minister to the question on return of money after the demonetization.
The above figures show that hardly 0.69% (Rs.10,720 crore) of black money could not be converted to a new currency.
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