RBI mum on fate of fake notes

Black Money-17, Corruption -16, Digitalisation-0: When Modi Spoke On November 8, 2016

"Rs 16,000 cr out of demonetised notes of Rs 15,44,000 cr did not come back to RBI".

However, the union minister for Finance says that the demonetization has addressed several other factors in nation: it has brought in huge cash into banks and enhanced digitization in country.

None of the promises made by him while announcing the decision had come true, he said.

The note-ban shows that the Modi government is capable of taking "bold" decisions, but its spectacular failure also demonstrates that courage that ignores the ground reality can be suicidal.

Former finance minister P Chidambaram criticised Prime Minister Narendra Modi for demonetisation decision.

The idea was to make it hard for hoarders of undeclared wealth, known in India as "black money", to exchange their undeclared cash for legal tender.

The biggest embarrassment for the government was when it claimed that more than 99 percent of the cash had been deposited.

"The trail of deposits" of bank notes "into bank accounts may provide valuable information to the revenue authorities in tracing unaccounted money", RBI said in its annual report. Jaitley questioned the wisdom of economists, who declared the note ban had miserably failed in its objectives.

Another stated aim of the demonetisation drive was to increase the tax base.

After the note ban, old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny. To which Chidambaram quoted a number saying: "In November 2016, electronic payment was Rs 94 lakh crore, in May 2017 (after six months of note ban) it has come back to Rs 94,21000 crore".

He must apologize to the country and we will continue to force accountability on this issue, " Mr Sharma said. Sharma argued that the average income of new taxpayers was Rs 2.7 lakh, which meant they would pay tax only on Rs 20,000 above the tax exemption limit of Rs 2.5 lakh.

Congress senior spokesperson Anand Sharma said none of the measures that Modi had promised with the ban on high-value currency notes, put into effect in November a year ago, had been realised. The problem has not yet been sorted out as the government has introduced so many riders in the name of controlling black money that legitimate funds are still jammed in many banks.

Singh said since notes worth Rs 14.18 lakh crore were in circulation and notes worth Rs 15.28 lakh crore have come back, there is a surplus of Rs 1.1 lakh crore. The RBI ended up spending over Rs 30,000 crore on the printing of new notes and managing the logistics of demonetization. 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.

While one has to agree that a large amount of cash in the system is not always beneficial for the economy, it is also clear that the government kept changing its narrative on demonetisation as it found the radical move disrupting the economy without giving its intended benefits of extinguishing a large portion of cash in circulation.

RBI's annual report also shows that the banking regulator's income for the 2016-17 declined by 23.56% while expenditure for the year increased by 107.84%.

Related:

Comments

Latest news

Gas Prices Are Going Way Up in Mississauga
Senior petroleum analyst for GasBuddy.com Dan McTeague says the price per litre could reach $1.30 over the Labour Day weekend. On Monday, the average posted price in Montreal was $1.16 for a litre of regular, a price that jumped to $1.27 a day later.

Here's What Theresa May Thinks China Should Do Regarding North Korea Crisis
She will hold a joint press conference with Abe today evening and meet Emperor Akihito on Friday before leaving. Nomura bank, Hitachi and carmakers Honda, Nissan and Toyota all have bases in the UK.

Venus Williams kicks off US Open with thrilling win
She was up a set, plus a break in the second at 2-0, when she faltered. That's why we play the match, because you have to win the match.

Packers to sign LB Brooks
Even if Brooks is limited to being a role player, he will fit in nicely with what the Packers need to succeed on defense in 2017. Former San Francisco 49ers linebacker Ahmad Brooks is signing with the Green Bay Packers , with whom he visited this week.

Just Kidding, Kathy Griffin Isn't Sorry For That Trump Decapitation Photo
Griffin refuted her apology multiple times on Channel 7 as well as on other Australian news shows. Via a series of text messages, she soon told him their friendship was over, The Cut reports.

President Trump Pushes Tax Reform In Missouri Speech
Trump envisions a corporate tax rate dropping from 35 percent, now the highest in the industrialized world, to around 15 percent. For instance, the administration has not stated publicly what will be the precise scope of Trump's tax reforms.

Apple edges closer to enterprise with Accenture iOS partnership
He added that the new collaboration with Apple will enable Accenture to help its customers "transform the way they work". In recent years, Apple has teamed up with a number of technology partners to extend its reach into the enterprise market.

Merkel Says Sanctions To Be Lifted Once Ceasefire In Donbass Implemented
The volume and intensity of the protests have been especially strong in her home region in formerly communist eastern Germany . Her mother had migrated from Ghana to Germany .

Latest & New Mobile Phones List — Xiaomi Mobile Phones
The sensors include an accelerometer, ambient light sensor, gyroscope, infrared, magnetometer, and proximity sensor. It will be a global launch event and XIaomi fans can also register on the website to get an invite to the launch.

Halep ready for Sharapova battle
Simona Halep , now ranked #2 among the female players in the world, will face Sharapova in that opening round. But it shouldn't happen because of the lack of matches. "I don't think we're both thinking that far ahead".

Three men charged in Charlottesville attacks on counterprotesters
The 21-year-old suffered a broken wrist and a chipped tooth, and he got eight staples in his scalp to close a head wound. If you have any information about Ramos' whereabouts, call the Charlottesville Police Department at 434-970-3280.

Sergio Aguero accused of assaulting a Bournemouth steward
Fernandinho also had a chance two minutes before half-time but his shot was repelled by Begovic as City had the momentum. We'll be building up to the game throughout the day and Robbie will offer the minute-by-minute account as it unfolds.

Iran welcomes restoring of Qatari relations
Qatar was among Saudi allies who followed suit to limit ties with Iran after it severed relations with Tehran in January 2016. Qatar and Iran share a massive offshore natural gas field, called the South Pars Field by Tehran and the North Field by Doha.

Facebook, Instagram 'crash' for thousands of internet users
Others problems including trouble logging in or loading pictures, while some were unable to use the Facebook Messenger app. The astonishing fact is the problem doesn't happen to all the users around the globe. "We're sorry for any inconvenience".

Only 5 percent of Tal Afar remains under IS control: Iraqi army
The aerial and ground offensives to recapture Tal Afar , located 70 kilometers (43 miles) west of Mosul, from the militant IS group started earlier this month.

Other news