The Reserve Bank of India (RBI) in its annual report for 2016-17 confirmed that almost 99% old Rs 1000 notes have come back. In the report released by RBI on Wednesday evening, it was revealed that out of 632.6 crore pieces of Rs 1,000 currency notes in circulation, 8.9 crores have not been returned post the note ban last November. This means that only 1.4% of the old Rs 1000 notes have not come back. Coming to Rs 500 notes, there were as many 588.2 crores 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.
The RBI said that old notes worth Rs 15.44 lakh crore were there in the market, out of which 15.28 lakh crore have been received by the bank. The report further mentioned that 7.62 lakh pieces of counterfeit currency notes were detected in FY’17 as against 6.32 lakh in FY’16. However, what came as a major setback for the government is that the cost of printing notes doubled to Rs 7,965 cr in FY’17 from Rs 3,421 cr in FY’16 on account of new currency printing post note ban.
Premise of having noteban was to choke, assess tenacity in parallel economy; assumption was 10-12% money won’t come back—C Sharma,Journalist pic.twitter.com/am9xnvVpCm
— NewsX (@NewsX) August 30, 2017
Last year on November 8, the Narendra Modi government had decided to ban old Rs 500 and Rs 1000 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. The government had replaced the old Rs 500 notes with new ones but Rs 1000 notes were completely removed from circulation.
The RBI had recently announced that it will soon be printing new Rs 50 and Rs 200 currency notes. Reacting to the development, former finance minister P Chidambaram said that with 1% demonetised notes not returning back RBI should be ashamed for recommending demonetisation.