1. RBI report on demonetisation LIVE updates: Ravi Shankar Prasad lauds note ban; says it brought transparency, detection of black money

RBI report on demonetisation LIVE updates: Ravi Shankar Prasad lauds note ban; says it brought transparency, detection of black money

RBI report on demonetisation LIVE updates: It has been revealed today that all but 1.4 per cent of the old Rs 1,000 notes have come back into the banking system.

By: | New Delhi | Updated: August 31, 2017 7:34 PM
RBI report on demonetisation, RBI report, RBI report 2017, RBI annual report, RBI report live, RBI report live updates, RBI report on demonetisation live, RBI report on demonetisation live updates, RBI report on demonetisation updates, rbi demonetisation, rbi demonetisation live updates RBI report on demonetisation LIVE updates: The RBI said that out of 632.6 crore pieces of Rs 1,000 currency notes in circulation. (Source: PTI)

RBI report on demonetisation LIVE updates: The central bank has revealed that almost 99 per cent of scrapped Rs 500 and Rs 1,000 currency has returned to the banking system. This was disclosed yesterday, precisely nine months after Prime Minister Narendra Modi had taken the much-discussed decision to scrap Rs 500 and Rs 1000 notes on November 8, 2016. Opposition led by Congress vehemently criticized PM Modi over this data. Notably, RBI said in its Annual Report for 2016-17 that only Rs 16,050 crore out of the Rs 15.44 lakh crore of the old high denomination notes had not returned.

Here are the RBI report on demonetisation LIVE updates as they break:

7: 20 PM: “Many voices claiming credit for anticipating #DeMonetisation fiasco. There was only one original & conscientious objector: @MamataOfficial”, TMC leader Derek O’Brien‏ tweeted.

7: 02 PM: Demonetisation brought transparency and led to detection of Black Money, tweeted Information Technology Minister Ravi Shankar Prashad.

6: 57 PM: Demonetisation attained its objective of making India a less cash economy reducing black money flow in the system. #DemonetisationSuccess,” tweeted Railways Minister Suresh Prabhu.

6: 50 PM: Union Information & Broadcasting minister Smriti Irani hails PM Narendra Modi’s demonetisation decision. Here’s what she tweeted.

6: 44 PM: As far as FMCG is concerned, there has been a bit of turbulence first with the demonetisation and then with run-up to GST,” Hindustan Unilever CEO and MD Sanjiv Mehta told PTI on the sidelines of the Economist Summit.

6: 38 PM: As far as FMCG is concerned, there has been a bit of turbulence first with the demonetisation and then with run-up to GST,” Hindustan Unilever CEO and MD Sanjiv Mehta told PTI on the sidelines of the Economist Summit.

6: 28 PM: Union Agriculture and Farmers Welfare Minister Radha Mohan Singh took to Twitter and hailed PM Modi’s demonetisation decision. He wrote: #Demonetisation bearing fruits, eliminating #corruption and #BlackMoney. #DemonetisationSuccess.

6: 20 PM: The downside impact from demonetisation is no longer going to be there. Going ahead growth will be driven by GST and the pace of cleaning banks’ balance sheets to improve the credit culture in the economy,” Indranil Pan from IDFC Bank told Reuters.

6: 10 PM: CPM leader Sitaram Yechury took to Twitter and took a jibe at Central government as reports of GDP growth came. He wrote: “Instead of steadying a sliding Economy, #Demonetisation pushed it further down a dangerous spiral. #GharibVirodhiSarkar.

06: 07 PM: “GDP numbers are certainly disappointing. The numbers seem to suggest that the slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST (goods and services tax) destocking,” Abheek Barua, Chief Economist, HDFC Bank, New Delhi told Reuters.

5: 58 PM: According to PTI, FMCG major HUL today said some pockets in wholesale trade and rural areas are yet to return to normal level after taking a hit from demonetisation and pre-GST destocking, and the sales in these areas are expected to pick up soon.

5: 48 PM: Even another AAP leader Ashutosh said the economy grew between January to March 2016 at the rate of 8.5 per cent, but it declined to 6 per cent for the same time during 2017 due to the severe impact of demonetisation.

5: 43 PM: Senior AAP leader Sanjay Singh also lashed out at the Reserve Bank of India for “lying” to the nation about the total amount of Rs 500 and Rs 1,000 notes in circulation before the drive, reported PTI.

Watch video:

5: 35 PM: Arvind Kejriwal-led Aam Aadmi Party (AAP) took a jibe at Central government and the RBI calling demonetisation drive the biggest scam in independent India that broke the backbone of the country’s economy.

5: 30 PM: Cash deposits of Rs 2.89 lakh cr post note ban by 9.72 lakh persons in 13.33 lakh accounts under radar, PTI quoted I-T department saying.

5: 20 PM: “The effect of Demonetisation is also clearly visible in the growth in Direct Tax Collections. Collection of Advance Tax under Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017,” said the PIB release further.

5: 10 PM: According to a PIB release, 18 lakh suspect cases were identified through use of data analytics where cash transactions did not appear to be in line with the tax profile of depositors.

5: 05 PM: The Income Tax Department launched ‘Operation Clean Money’(OCM) on 31st January, 2017 to analyse the data of the persons who deposited large sums of cash, said the PIB released.

Watch video: 

4: 58 PM: “Among the main objectives of Demonetisation was the flushing out of black money and also conversion of the non-formal economy into a formal economy to expand the tax base,” read a PIB release issued by Ministry of Finance.

4: 53 PM: According to PTI, the finance ministry on Thursday ruled out opening another window for depositing the scrapped Rs 500 and Rs 1,000 notes, with the government now saying that it had expected all the annulled currency to be returned, in line with the latest RBI data.

4: 48 PM: Owaisi further said that demonetisation only created a panic situation and landed the poor and the middle-class in deep trouble and distress.

4: 40 PM: “Apart from distress, apart from people losing lives, 2 per cent is the loss of GDP. What else did demonetisation give us? Who will take responsibility of all this? The decision lies in the door step of the Prime Minister and because of his impulsive decision, the country lost 2 per cent GDP. It is a completely disaster,” Owaisi said.

4: 36 PM: All India AIMIM chief Asaduddin Owaisi on Thursday told ANI that it was because of the PM Modi’s impulsive decision that people were pushed into distress and the country lost 2 per cent GDP.

4: 28 PM: “A number of shell companies have been revealed. If the money is in the bank, it is a part of the economy and we can use it for the welfare of the people,” Goyal said further.

4: 20 PM: “I have no doubts that demonetisation has been a success. I’d like to congratulate Modiji for attacking black money the way they did and making it clear that this government won’t spare anyone, who is possessing black money. It took us three years to get rid of this black money,” Goyal added while speaking at the FICCI Business and Climate Summit.

4: 10 PM: Bharatiya Janata Party (BJP) leader Piyush Goyal has labelled demonetisation as a successful idea, lauding Prime Minister Narendra Modi’s ‘attack’ on black money, reported ANI.

3: 58 PM: Here’s what Niti Aayog’ VC Rajiv Kumar has to say about the demonetisation report. Watch video

3: 52 PM: CPI (M) recently took to Twitter and called Narendra Modi’s demonetisation, a total and complete failure.

3: 45 PM: There is some money with the people here also. Our assessment is that the number is not very large,” DEA Secratery Subhash C Garg told ANI.

3: 40 PM: “In the near term, the economy will continue to recover from the temporary liquidity shock from demonetisation, while adjusting to the new goods and services tax (GST),” the report added further.

3: 30 PM: Deteriorating asset quality in agriculture, and micro, small and medium-sized enterprise (MSME) portfolios pose risks, said a report from the global rating agency, Moody’s.

3: 21 PM: Indicators, such as net new non-performing loan (NPL) formation and problem loan ratios, suggest a bottoming of the credit cycle, Vadlamani said.

3: 16 PM: “The outlook for the banking system reflects a stable operating environment and improved prospects for asset quality, among other factors,” Moody’s vice president and senior credit officer, Srikanth Vadlamani, said in a report.

3:07 PM: The 15 banks rated by Moody’s in the country together account for about 70 per cent of assets in the system.

3:02 PM: Global rating agency Moody’s today gave a stable outlook to the country’s banking system due to the ongoing progress on asset quality front and on better operating environment.

WATCH- RBI data on demonetisation

2:57 PM: The rating agency said the outlook for the system is also in line with the stable outlooks for 10 of the 15 banks it rates.

2:52 PM: The net transfer of profits to the Union Government as a result have fallen drastically during this year by 53.5 per cent.

2:47 PM: The report further said that the number of suspicious transaction reports by Banks/FIs/Intermediaries also increased by 345 per cent and this in turn “could possibly lead to increase in future tax revenues”.”This coupled with implementation of GST will help in better fiscal realisation at a future date,” the report added.

2:42 PM: In its Annual Report for 2016-17, RBI has said that post-demonetisation it has spent Rs 7,965 crore on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.

2:37 PM: The banned notes formed 86 per cent of the currency in circulation at that time. Holders of old notes were given a 50-day window to deposit them in banks.

2:32 PM: Demonetisation has caused net loss to RBI’s seigniorage — the profit accruing from currency issuances and liquidity operations — besides increasing the cost of printing notes, says an SBI Research report.

2:26 PM: On November 8 last year, the government had banned old Rs 500 and Rs 1,000 notes in an attempt to weed out black money in the country. The old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny.

2:21 PM: “The demonetisation exercise has resulted in net loss of seigniorage to the RBI,” SBI’s research report Ecowrap said.

2:16 PM: “In the current case, there is a seigniorage loss, as the face value of Rs 15.28 trillion of Rs 17.1 trillion has been printed,” it said. The report further said that “the cost of printing notes and coins has increased during this year”.

2:11 PM: RBI’s role has been shameful in demonetisation. It is shameful on part of RBI to have recommended demonetisation, P Chidambaram told ET Now

2:09 PM:  Appalled by the fact that the government is trying to defend the move as a great economic act. RBI’s role has been shameful in demonetisation. It is shameful on part of RBI to have recommended demonetisation, P Chidambaram told ET Now.

2:07 PM: P Chidambaram to ET Now: Government underestimated the entire cost of this completely misguided adventure. In demonetisation rush, counterfeit currency has also been converted

2:05 PM: P Chidambaram to ET Now: Cost incurred during demonetisation more than the windfall Best way to discourage cash is to limit notes, keep Rs 500 as highest denominatioN. Demonetisation is not the answer to merge the informal economy with a formal economy. Government has got Rs 30,000 cr less dividend from RBI than budgeted

2:03 PM: Cost incurred during demonetisation more than the windfall. Best way to discourage cash is to limit notes, keep Rs 500 as highest denomination. Demonetisation is not the answer to merge the informal economy with a formal economy: P Chidambaram told ET Now.

2:01 PM: Rise in tax collection from 14% to 20% happened in the past too. Cash use is still 50-80% in the economy. Sectors that used to generate black money pre-demo continue to do so today, P Chidambaram told ET Now:

2:00 PM: P Chidambaram to ET Now: Data on I-T searches since 1999 must be released. Secular rise in I-T searches not due to due to demonetisation. Direct tax pay increased at a phenomenal phase under UPA

1:59 PM: P Chidambaram to ET Now: People with small undisclosed cash may have suffered

1:58 PM: P Chidambaram to ET Now: Generation of black money may have come down since February, but still continues

1:57 PM: P Chidambaram to ET Now: Is every political rally expense made by cheque

1:56 PM: P Chidambaram to ET Now: Narendra Modi government gave an opportunity to black money holders to make it white

1:55 PM: P Chidambaram to ET Now: Detection of Rs 17,526 cr of unaccounted money post demonetisation is a pittance

1:54 PM: There are a lot of activities still being financed by cash and not cheque, says P Chidambaram

1:53 PM: The central Government misjudged RBI’s calculation methodology, former Finance Minister P Chidambaram told ET Now.

1:52 pm: Voluntary disclosure never had anything to do with black money, former Finance Minister P Chidambaram told ET Now.

1:51 PM: P Chidambaram to ET Now: This was a cost-free conversion of black money to white money

1:50 PM: Ultimately only Rs 6000 – Rs 8000 cr will not come back to the system, P Chidambaram to ET Now

1:49 PM: P Chidambaram to ET Now: Narendra Modi government gave an opportunity to black money holders to make it white

1:48 PM: Government had expected large amounts not to return and reap benefit, former Union Finance Minister P Chidambaram told ET Now.

1:45 PM: P Chidambaram to ET Now: Not sure whether RBI counted the money from district cooperative banks

1:42 pm: P Chidambaram to ET Now: Believe demonetisation was a hopelessly misguided exercise

1:40 PM: WATCH- What Economic Affairs Secretary has to say about RBI report

1:38 PM: There is currency with NRIs, currency with nepal; that is enough to say that demonetisation was a failed exercise, says P Chidambaram to ET Now

1:28 PM: This is the time for the Reserve Bank of India and the central government to work together, says NITI Aayog Vice Chairman.

1:25 PM: RBI revelations point towards a big scam, says Congress leader Anand Sharma

1:23 PM: Demonetisation was a conspiracy to help industrialists, says former Union Minister Anand Sharma

1:21 PM: PM Narendra Modi has continuously told wrong things on demonetisation, Congress leader Anand Sharma.

1:19 PM: Congress will move privilege motion against the NDA government, says Anand Sharma.

1:10 PM: No more black money in economy. All money are now out in open, says NITI Aayog Vice Chairman

1:08 PM: Demonetisation was a government’s decision, not Reserve Bank of India’s, says Niti Aayog Vice Chairman.

1:06 PM: Niti Aayog Vice Chairman Rajiv Kumar said cash use has gone down.

1:04 PM: Onus is now on Tax Department, says Niti Aayog Vice Chairman Rajiv Kumar

12:53 PM: Economic Affairs Secretary Subhash Garg said that demonetisation was a huge blow to high value currency.

12:43 PM: NITI Aayog Vice Chairman Rajiv Kumar told India Today the demonetisation was economically worthwhile

12:37 PM: Finance Minister Arun Jaitley today put private sector debtors on notice saying they will have to pay their dues to banks or allow somebody else to step in and take control of the business.

12:32 PM: Using the new bankruptcy law, the central bank has prodded banks to initiate insolvency proceedings against 12 large corporate defaulter to resolve Rs 2 lakh crore or almost a fourth of the country’s bad debt.

12:27 PM: The RBI has already recommended banks to initiate insolvency proceedings against 12 large defaulters.

12:24 PM: WATCH- Opposition attacks PM Narendra Modi

12:21 PM: On bad loans, he said that resolution will take time. “You can’t have a surgical solution to it”, he said, adding that if private sector cannot pay back its debts then someone else should be allowed to take over.

12:16 PM: The Finance Minister also said that consolidation of PSU banks is on cards as the country needs “fewer but stronger banks”.

12:13 PM: On the Goods and Services Tax (GST), Jaitley said its inflationary impact has been avoided and there is a scope of convergence of tax rates going forward.

12:10 PM: The RBI yesterday said about 99 per cent of Rs 15.44 lakh crore demonetised currency came back into the system.

12:05 PM: Jaitley has vehemently defended the note ban decision, which sucked out 86 per cent of the currency in circulation, curbed economic activity and put common man at great inconvenience, saying the move was not intended to confiscate money but to bring it in formal channels and tax it.

12:00 PM: WATCH- RBI report on demonetisation; here is all you want to know

11:55 AM: Finance Minister Arun Jaitley has said the objective of demonetisation was to shift India from a predominantly high cash economy.

11:51 AM: “We intended to give a blow to black money and… expand the tax base of the country. It is obvious that post demonetisation, the direct tax base has already started expanding substantially,” the FM said.

11:47 AM: Although an overwhelming amount of money was deposited in banks it is not a concern for the government as it is good for the economy that more money has come into the formal system.

11:43 AM: “The fallout of demonetisation is on predicted lines … the fact that money got deposited in banks doesn’t make it legitimate money,” he said, adding the country was ready for demonetisation even though there was political resistance,” FM Jaitley said.

11:40 AM: Meanwhile, Finance Minister Arun Jaitley today said the fallout of demonetisation was on predicted lines and the economy will benefit in medium and long term.

11:35 AM: A day after the Reserve Bank said that almost all of the demonetised currency came back into the system, Jaitley said the fact that money got deposited in banks does not mean that all of it is legitimate money.

11:30 AM: “It’s nobody’s case that black money has been completely eliminated after demonetisation,” he said.

11:25 AM: He said demonetisation, coupled with GST, will give a “significant boost” to direct tax revenues as many people have come under the tax net.

10:05 AM: Also, the RBI is in discussions with the government on acceptance or otherwise of those notes held by citizens and financial institutions in Nepal.

10:00 AM: The report further said that during 2016-17, the number of suspicious transaction reports filed by banks and other financial intermediaries with the Financial Intelligence Unit “witnessed a quantum jump”.

9:55 AM: Former RBI deputy governor R Gandhi is of the view that demonetisation will have a long-term impact, saying expectations of various quarters that sizeable portion of the demonetised currency will not return have not been fulfilled.

10:00 AM: While stating that Rs 15.28 lakh crore have already come back, the RBI said the government has allowed District Central Cooperative Banks (DCCBs) to deposit the scrapped notes accepted by them from their customers during November 10-14.

9:52 AM: After the note ban, old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny.

9:49 AM: A collateral damage as a result of rise in printing and other cost was dividend the RBI paid to the government.

9:46 AM: The central bank said its income for 2016-17 decreased by 23.56 per cent while expenditure jumped 107.84 per cent. “The year ended with an overall surplus of Rs 306.59 billion as against Rs 658.76 billion in the previous year, representing a decline of 53.46 per cent,” it said.

9:41 am: Chidambaram in another tweet said: “RBI ‘gained’ Rs 16,000 crore, but ‘lost’ Rs 21,000 crore in printing new notes! The economists deserve Nobel Prize.” “Rs 16,000 cr out of demonetised notes of Rs 15,44,000 cr did not come back to RBI. That is 1%. Shame on RBI which ‘recommended’ demonetisation,” he said.

9:38 AM: The government replaced old Rs 500 notes with new ones, but no replacement for Rs 1,000 notes has been made. Instead, a new Rs 2,000 note was introduced post cash recall.

9:35 AM: According to the RBI, there are as many 588.2 crore of Rs 500 notes, both old and new in circulation as of March 31, 2017. As of March 31, 2016, there were 1,570.7 crore Rs 500 notes in circulation. As many as 328.5 crore pieces of new Rs 2,000 notes were in circulation as on March 31, 2017.

9:32 AM: Besides new Rs 500 and Rs 2,000 notes, the RBI has circulated new Rs 200 notes last week.

9:30 AM: The Reserve Bank, which has so far shied away from disclosing the actual number of junked currency deposited after the November 8, 2016, decision, said in its Annual Report for 2016-17 that only Rs 16,050 crore out of the Rs 15.44 lakh crore of the old high denomination notes have not returned.

9:26 AM: While the counterfeit currency made up for a minuscule number, RBI post-demonetisation spent Rs 7,965 crore on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.

9:24 AM: The Opposition was quick to pounce on the data to attack the government, with former finance minister P Chidambaram wondering if demonetisation was “a scheme designed to convert black money into white”.

9:22 AM: Finance Minister Arun Jaitley vehemently defended the note ban decision, which sucked out 86 per cent of the currency in circulation, curbed economic activity and put common man at much inconvenience, saying the move was not intended to confiscate money but to bring it into formal channels and tax them.

9:20 AM: The move, he said, was aimed at flushing out black money, eliminating fake currency, striking at the root of terror financing, converting non-formal economy into formal one to expand tax base and employment and giving a big boost to digitisation of payments to make India a less-cash economy.

9:18 AM: With the return of the money, the owners have been identified, he said, adding that the tax department is scrutinising 18 lakh bank accounts with unusual deposits post note ban that do not match with previous income profile.

9:16 AM: Chidambaram’s criticism, he said “people who had not taken a single step during their tenure against black money have not understood the intent behind demonetisation”.

9:14 AM: “The government had expected all the specified bank notes (of old Rs 500 and Rs 1,000) to come back to the banking system to become effectively usable currency,” the finance ministry said in a statement.

9:12 AM: As on November 8, 2016, when the note ban was announced, there were 1,716.5 crore pieces of Rs 500 and 685.8 crore pieces of Rs 1,000 in circulation, totalling Rs 15.44 lakh crore.

9:10 AM: While it was widely expected that those holding black money may not be able to deposit them in banks during the 50-day window provided, the RBI said just 8.9 crore pieces of Rs 1,000 notes or 1.3 per cent of the scrapped ones have not returned. It, however, did not give a specific number for the old 500 rupee notes.

9:08 AM: On counterfeits currently, it said a mere 7.1 pieces of Rs 500 note per million in circulation and 19.1 pieces of Rs 1,000 notes per million were found to be fake in its survey.

9:06 AM: Samajwadi Party leader Naresh Agarwal said his party would move a privilege motion against RBI Governor Urjit Patel for “misleading a parliamentary panel by not revealing the number of notes returned”.

9:04 AM: Asked about the then attorney general Mukul Rohatgi’s statement in the Supreme Court that the government had expected Rs 10 or 11 lakh crore to be returned, Jaitley said those were “speculative” statements.

9:02 AM: “Subject to future corrections based on verification process when completed, the estimated value of specified bank notes (SBNs) received as on June 30, 2017, is Rs 15.28 trillion,” the central bank said.

9:00 AM: WATCH- Here is all you need to know about RBI report on demonetisation

8:54 PM: The RBI report stating that all but 1.4 per cent of the old Rs 1,000 notes have returned to the banking system post demonetisation “points to a big scam”, West Bengal Chief Minister Mamata Banerjee has alleged.

8:51 PM: The Reserve Bank said in its Annual Report for 2016-17 that only Rs 16,050 crore out of the Rs 15.44 lakh crore of the old high denomination notes had not returned.

Read Also: RBI report on demonetisation: How Centre, BJP kept moving the goalposts

8:47 AM: With over Rs 15 lakh crore of junked currency coming back into the banking system post demonetisation, the government has said a “significant portion” of it could be black money.

8:45 AM: The tax authorities have found undisclosed income of Rs 17,526 crore and Rs 1,003 crore has been seized so far, the finance ministry said in a statement.

8:43 AM: “A significant portion of SBNs (Specified Bank Notes) deposited could possibly be representing unexplained/black money,” the finance ministry said in a statement.

8:41 AM: Finance Minister Arun Jaitley said the objective of demonetisation was to shift India from a predominantly high cash economy.

5:30 AM: Almost all Rs 1000 notes in circulation returned via demonetisation drive, says RBI Report, as tweeted by CNN News18.

12:30 AM: RBI report: Arun Jaitley hits back, says objective of demonetisation was digitisation, curbing terror finance, reported Times Now.

11:50 PM: Crores of people have lost their livelihood as a result of demonetisation, said CPM Politburo member Sitaram Yechury, tweeted Times Now.

11:45 PM: Indians returned almost all of the estimated 15.4 trillion rupees ($242 billion) in high-currency bills removed from circulation in a shock move late last year, the Reserve Bank of India (RBI) said in its annual report out on Wednesday, reported Reuters.

11:35 PM: Our economy has come down due to demonetization. Fight against blackmoney was only a claim, said CPM’s Sitaram Yechury, tweeted Times Now.

11:30 PM: That means (99% denotified notes returning to RBI) black money has become white money, said CPM Politburo member Sitaram Yechury, tweeted Times Now.

11:00 PM: Reaction to Arun Jaitley’s statement on the Demonetisation data

10: 45 PM: Economic Affairs Secretary Subhash Chandra Garg tweeted, “With RBI disclosing the numbers of returned notes today and the measure having been successfully implemented, debate should be over.”

10: 35 PM: According to CNBC- TV 18 sources in Finance Ministry, GST rates could be eased if collections continue to rise.

10: 30 PM: Economic activity to expand 7.3% this fiscal, says RBI.

10: 25 PM: Trinamool Congress leader and quizmaster Derek O’Brien recently took a jibe at PM Narendra Modi after RBI’s recent report on demonetisation. Conducting a survey on Twitter, the TMC leader asked “Give me 50 days. Burn me alive if I am wrong”, who said this?

10: 15 PM: “The real object of demonetisation was formalisation, attack on black money, less cash currency, bigger tax base, digitisation, a blow to terrorism,” Arun Jaitley had said during a media conference held earlier today.

10: 09 PM: With over Rs 15 lakh crore of junked currency coming back into the banking system post demonetisation, PTI quoted the government saying that a ‘significant portion’ of it could be black money.

10: 04 PM: Finance Minister Arun Jaitley on Wednesday hit back at the Congress for lashing out at the Reserve Bank of India for note ban saying those criticising demonetisation do not understand it, reported India Express.

Watch video:

9: 54 PM: Former Union Minister Kapil Sibal told PTI, “Demonetised black money successfully laundered! Someone in government should be given Bharat Ratna for this conversion.”

9: 44 PM: “It was an ill-thought decision which created financial anarchy in the country. Tens and millions of jobs were lost. Hardships were inflicted upon the poor people, farmers, workers and housewives of the country. Now the prime minister should explain where is that black money?,” PTI quoted Sharma asking.

9: 40 PM: Congress’ senior spokesperson Anand Sharma said none of the objectives of demonetisation has been met.

9: 37 PM: According to PTI, Samajwadi Party (SP) leader Naresh Agarwal said his party would move a privilege motion against RBI Governor Urjit Patel for misleading a parliamentary panel on the issue.

Watch video:

9: 31 PM: According to PTI, Congress chief spokesperson Randeep Surjewala demanded an apology from Prime Minister Narendra Modi saying demonetisation not only dented institutional sanctity of the RBI but also India’s credibility abroad.

9: 22 PM: Transactions of more than 3 lakh registered companies are under the radar of suspicion while one lakh companies were struck off the list, the release informed.

9: 14 PM: ” As a result of demonetisation drive, there is a substantial increase in the number of Income Tax Returns (ITRs) filed. The number of Returns filed as on 05.08.2017 registered an increase of 24.7 % compared to a growth rate of 9.9% in the previous year,” said a recent PIB release

9: 08 PM: More than 37000 shell companies have been identified involved in hiding black money, hawala transactions post demonetisation, Reuters quoted Indian government saying.

9: 02 PM: West Bengal CM Mamata Banerjee took to Facebook and shared a hard hitting post soon after RBI released the demonetisation report. Here’s what she wrote.

8: 58 PM: Former RBI Deputy Governor R Gandhi and former chief statistician Pronab Sen react to FM Arun Jaitley’s statement on demonetisation data. Watch video

8: 55 PM:  Further the Finance Ministry said, “Status of the Return of Specified Bank Notes (SBNs) – Reserve Bank of India (RBI) Annual Report 2016-17.”

8: 51 PM: Further the Arun Jaitley-led ministry said, “Since bulk of SBNs have come back to Banking system shows that banking system & RBI were able to respond to challenge in a limited time.”

8: 49 PM: “The Government had expected all the Specified Bank Notes (SBNs) to come back to the Banking system to become effectively usable currency,” Finance Ministry added further.

8: 45 PM: “The Government had expected all the Specified Bank Notes (SBNs) to come back to the Banking system to become effectively usable currency,” Finance Ministry added further.

8: 42 PM: “Total currency in circulation of all denominations on Nov 8, 2016 was Rs.17.77 lakh cr while it stood at Rs.14.75 lakh cr as on Aug 4, 2017,” Ministry of Finance said in a tweet.

8: 40 PM: Congress in Daman & Diu took to Twitter and called the demonetisation a ‘colossal failure’.

8: 38 PM: According to PTI, post-demonetisation RBI spent Rs 7,965 crore in 2016-17 on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.

8: 35 PM: Sitaram Yechury took to Twitter and sought to know the aim of the move, implementation of which allegedly saw 100 deaths even as the poor “suffered the most” because of it.

8: 33 PM: The CPI(M) today launched a stinging attack on the Centre over demonetisation, saying India can “never forgive” the Modi government for the “anti- national act”, which allegedly hit the country’s economy, reported PTI.

8: 30 PM: Here’s what Congress’ leader Randeep Surjewala said after RBI’s report on demonetisation.

8: 23 PM: Maharashtra Congress leader Shehzad Poonawalla‏ took to Twitter and termed demonetisation as a ‘mega scam’ and ‘dhokha’soon after RBI released it latest data on note ban.

8:20 PM: “Despite tall claims by PM Modi, #demonetisation hardly made a dent in India’s vast shadow economy,” said Congress through its Twitter handle.

8:12 PM: He said the fact that people were compelled to deposit black money in the banks is itself is a big success.

8:10 PM: Arun Jaitley said that his next big step will be against the money used in elections. The Finance Minister said that he plans to ensure that money used in elections comes through the taxation system.

8:07 PM: He further added that there was a decrease in the terror funding post demonetisation.

8:04 PM: Talking about the Opposition reaction on RBI report, Jaitley said that people who never fought against black money will never understood its importance.

8:02 PM: He said that the real object was demonetisation was not that how much money came back.

8:00 PM: The FM added that another objective was to promote demonetisation and the cash exchange has reduced by 17%

7:59 PM: He said the RBI report shows that more and more transactions are taking place within the banking system.

7:57 PM: Arun Jaitley is addressing the media right now. He said object of DeMo was India is a predominantly high cash economy and the government wanted to give blow to black money by expanding the tax base.

7:54 PM: “99.9% of the notes back in the banking system. 100s died in queues. The poor suffered the most. All this for what? Lives & livelihoods lost, the Economy got a shock, workers lost their jobs. India can never forgive Modi govt for this anti-national act,” Sitaram Yechury tweeted.

7:45 PM: “Rs 16000 cr out of demonetised notes of Rs 1544,000 cr did not come back to RBI. That is 1%. Shame on RBI which ‘recommended’ demonetisation,” said P Chidambaram in his tweet.

7:40 PM: Demonetisation was the most effective tool to cleanse the economy, says GVLN Rao while talking to ET Now.

READ | RBI annual report: Narendra Modi demonetisation success can’t be questioned

7:38 PM: Congress leader Manish Tewari while speaking to ET Now said that there are lots of unanswered questions on the process and substance of demonetisation.

7:36 PM: RBI in its report said that it pumped in 2380 crore notes totalling Rs 5.54 lakh crore in the two months post demonetization between November 9 to Decemeber 31.

7:29 PM: 89 million notes of Rs. 1000 rupee currency did not come back to the system out of a total of 6700 million notes that were in the system as on November 8, said RBI in its report, as per ANI.

7:24 PM: Finance Minister Arun Jaitley to give a statement shortly on RBI’s demonetisation figures.

7:18 PM: Uday Kotak while talking to ET Now said that we should not look at demonetisation as single act but broader philosophy. He said that the step was taken for cleaner economy.

7:05 PM: Pronab Sen while speaking to CNBC TV18 defended the government. He said that in the long term this would help in better tax compliance and added that people will see a lot of buoyancy in indirect tax collection.

7:02 PM: Gandhi added that the Indian economy is being managed with less money.

7:01 PM: Congress spokesperson Randeep Surjewala has also hit out at the Modi government in a series of tweets. “Rewind: Modiji’s obfuscation exposed once again. On Ind. Day, PM claimed to have unearthed ₹3 Lakh Cr black money post #Demonetisation. 1/n,” he wrote.

7:00 PM: R Gandhi, ex-deputy governor RBI while speaking to CNBC TV18 said that demonetisation is a very complex exercise

6:57 PM: Former finance minister P Chidambaram attacked the government by asking that with 99 pc notes legally exchanged was demonetisation a scheme designed to convert black money into white, reported PTI.

6:55 PM: Congress spokesperson Manish Tewari while speaking to CNBC TV18 said that demonetisation is a massive fraud.

6:52 PM: Naresh Aggarwal, Standing Committee On Finance told CNBC TV18 that we will move privilege motion against RBI Governor Urijit Patel

  1. K
    K.Mundanad
    Aug 31, 2017 at 8:24 pm
    After release of RBI annual report, showing that despite last year's surprise ban of high value currency notes, 99 percent of such notes had made its way back into the banking system, the real consequence or fall-out, of the demonetisation is crystal clear to the general public. How it was possible? Retail traders and others were accepting banned notes from their regular customers at face value, and from others at a small discount. They would deposit the amount so received with their bankers, during the demonetisation period, up to 31st December, 2016. Their turnover and profit soared. This loophole was not foreseen by the NDA, which had hoped that ‘demonization’ of our financial system would make it difficult for ders of such notes to ‘whiten’ them.
    Reply
    1. Mogan Vasu
      Aug 31, 2017 at 12:30 pm
      Demo was just a currency audit. Currency printed for last 70yrs was not tallying with the tax collections. Tax collections was at all time low before demo inspite of high growth in cash based economy with high rate of inflation. Resulting in Achedin for rich black currency dealers or tax evaders and recession for honest tax payers. Now that the audit is complete wait for the remedial actions.
      Reply
      1. J
        jew
        Aug 31, 2017 at 11:08 am
        Amazing economics!! India has become the laughing stock of the whole world with this incredibly stupid step.
        Reply
        1. Shivam Shukla
          Aug 31, 2017 at 12:31 am
          The best scheme to make black money to white. If you are from that 1 who did not deposit your currency..you missed a big chance to convert black money to white. Also Arun Jaitely claims that not all money deposited in the banks is white..I wanted to tell him that not all money deposited in the banks is black! please grow up Mr FM! Joke of a govt BJP
          Reply
          1. Shivam Shukla
            Aug 31, 2017 at 12:28 am
            Dear Arun jaitely...demonetization has been a total disaster. 99 and more currency is back in banks. I raise a black flag on this government, Terrorism has not stopped, balck money still circulates, mallaya and lalit Modi are still absconding...nothing has changed. Only loss of jobs, loss of economy has been seen. This government has led me down as a citizen. modi should be charged for the death of 100 or so people due to the b er of demonetization. Now who will take the responsibility of this ?
            Reply
            1. Amitava Dhar
              Aug 30, 2017 at 9:58 pm
              How is releasing 200 rupee notes going to help in achieving cashless economy? Demonetization is a big lie from Modi and BJP.
              Reply
              1. Subhash Podder
                Aug 30, 2017 at 9:17 pm
                Kala dhan ka hisab mila ?
                Reply
                1. Subhash Podder
                  Aug 30, 2017 at 9:08 pm
                  Demonetization is a massive fraud . Black money has been converted in new currency . You can't claim it is a successful excessive .Many people not only died , invalid , job loosened ,etc . This is an whimsical decision . Any minister , Govt. higher ups were not seen in the long ques for exchanging their limited money . Academicians. ex- RBI Governors opinion has not been taken care by the Gov. I personally was one of the sufferer by standing in the line since early morning to late evening to get Rs 2000/ or less .
                  Reply
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