An estimate suggests in coming 20 days the government expects that the position will be such that the economy would not suffer for want of currency.
Demonetisation: The demonetisation scheme is to close by December 30, and as the countdown runs, it is seen that the government and the Reserve Bank of India have managed to introduce just about Rs 5 lakh crore of new currency notes in the economy. However, this is less than a third of the total value of Rs 500 and Rs 1,000 notes – Rs 15.5 lakh crore, that were withdrawn from circulation on November 8 midnight. According to a top government official, the total currency in circulation today is about Rs 7 lakh crore with this addition.
An estimate suggests in coming 20 days the government expects that the position will be such that the economy would not suffer for want of currency. Centre is looking at the formal economy having an active circulation of about Rs 9 lakh crore to Rs 10 lakh crore in the next three weeks and expects to bring about Rs 2.5 lakh crore more in new currency in circulation.
However, if we see the actual numbers, the Rs 9 lakh crore to Rs 10 lakh crore that will be available by the end of December would be just 51%-57% of the total value of currency in circulation before demonetisation. On the other hand, withdrawal of currency per day has gone up to about Rs 16,000 crore, as per the reports of Indian Express.
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Though the government expects a significant percentage of the money to return to the system and that will be captured by the recent amendments to the Income-Tax Act, the banks have been asked to furnish details of deposits of over Rs 50,000 in Jan Dhan accounts, the I-T department is also preparing to send notices and issue summons after January 1, 2017, in cases of “suspicious” transactions.