RBI Data Confirms Note Ban was a Total Failure!

When Manmohan Singh’s Prediction On The Effect Of Demonetisation On GDP Came True

Even now, Modi government is not ready to admit its fault about how the note ban has pushed back the economy of the country in several fronts, causing harm to the people, espcially the poor and those employed in unorganised sectors.

Former Union minister Kapil Sibal said, "Demonetised black money successfully laundered!" He was referring to Modi's promises to uncover black money, remove counterfeit notes and hit at financing of terrorism. "Was demonetisation a scheme created to convert black money into white?", Chidambaram said on Twitter. Before the notes ban, the volume of digital transactions was much higher at 1,452 million in September 2016.

He said that apart from all these aims, the note-ban also was a jolt to the separatists and they suffered heavy financial losses as money was seized and could not reach the terrorists also.

"99% notes legally exchanged!"

The finance ministry rushed out a lengthy statement detailing the positive impacts, including improved tax collection, a widening of the tax base and new information on possible tax evaders.

The Opposition on Thursday stepped up its attack on the government over the RBI's annual report that revealed low efficacy of demonetisation, with the Congress terming the move to junk high currency notes as the "biggest scam" and the CPI-M demanding a "black paper" on the issue.

The hope was that black money held in the form of cash wouldn't be deposited into banks, given that people holding it wouldn't want to be identified - in the process, a vast amount of illegal money would be destroyed. The RBI yesterday said about 99 per cent of Rs 15.44 lakh crore demonetised currency came back into the system. According to reports from The Indian Express, RBI has released a report confirming that out of the 15.44 lakh crore worth of old notes that were present in the market during the demonetization period, Rs 15.28 lakh, crore worth of old notes had been returned to the bank. The government has been gradually making enrolment to its national electronic database "Aadhaar" mandatory for tax returns, opening of bank accounts and any purchases above 50,000 rupees.

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The government of India banning high value currency notes on November 8 previous year - a move that has come to be known as demonetisation - is truly a non-event, contrary to how the government had projected it.

He further said that the government needs to take other measures to tackle black money.

According to Niti Aayog member Bibek Debroy, the most estimated figure of counterfeit currency in 2016 was Rs 2,000 crore but according to the RBI report, only Rs. 41 crore of the fake notes discovered over the last one year.

The Congress leader also said the FDI had fallen by seven per cent and credit to the industry was lowest in the last 63 years.

Left: Indian PM Modi during demonetization speech; Right: People standing in long queues during note ban.

"The total expenditure of the RBI also increased by 107.84 per cent from ₹14,990 crore in 2015-16 to ₹31,155 crore in 2016-17", reported The Telegraph. We had told the Prime Minister and the Government, this money belongs to the people of India, to the farmers, to the workers, to the housewives, to Government employees, to small entrepreneurs, to small industries, Mr Sharma said.

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