99 per cent of the junked Rs 500 and Rs 1,000 notes have returned to Banks

Vastavam web: As much as 99 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system, RBI said today, prompting opposition to question the efficacy of the government’s unprecedented note ban decision to curb black money and corruption.The Reserve Bank, which has so far shied away from disclosing the actual number of junked currency deposited after November 8 last year, said in its Annual Report for 2016-17 that Rs 15.28 lakh crore of the junked currency had come back into the banking system, leaving only Rs 16,050 crore out.
As on November 8, 2016 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.The demonetisation was hailed as a step that would curb black money, corruption and check counterfeit currency but RBI said just 7.1 pieces of Rs 500 note per million in circulation and 19.1 pieces of Rs 1,000 notes per million in circulation were found to be fake in its sample survey.Opposition was quick to seize on the data to attack the government with former finance minister P Chidambaram saying, “RBI ‘gained’ Rs 16000 crore, but ‘lost’ Rs 21000 crore in printing new notes! The economists deserve Nobel Prize.” Chidambaram also wondered if demonetisation was “a scheme designed to convert black money into white?”.
Samajwadi Party leader Naresh Agarwal said his party would move a privilege motion against RBI Governor Urjit Patel for misleading a parliamentary panel on the issue.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.A collateral damage as a result of rise in printing and other cost was dividend RBI pays to the government.
RBI 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.RBI said 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.Besides, new Rs 500 and Rs 2,000 notes, the RBI has also circulated new Rs 200 notes last week.