Published: Thu, July 13, 2017
Medicine | By Megan Pierce

Par panel to submit demonetisation report in Monsoon Session

Par panel to submit demonetisation report in Monsoon Session

Just after a month of the demonetisation announcement, in the second week of December, the RBI made an announcement saying banking system has received Rs 12.44 lakh crore in invalidated high value notes until 10 December. Patel said the total money in circulation now is Rs. 15.4 lakh crore against Rs. 17.7 lakh crore in November past year when Prime Minister Narendra abruptly banned high value notes in an attempt to battle black money and corruption.

Counting of the demonetised Rs 500 and Rs 1000 goes on for six days a week every week at the RBI offices.

Besides Saturdays, many other holidays have also been suspended in order to complete the mammoth task.

As RBI Governor Urjit Patel prepared to leave the room after a longish parliamentary panel meeting on Wednesday, a selfie request came his way to which he could not say no.

That leaves us with only one possibility - the amount of money returned to the banking system is more than what was demonetised. In case of fake currency, the notes have to be returned to the respective banks.

Remember, though the deadline for public to deposit/exchange old notes ended on 30 December, the window for NRIs and certain categories were open until March-end. The Union Finance Ministry had last month given a relief to the DCCBs and allowed them to deposit old currency notes lying with them since demonetisation with any RBI branch within 30 days and receive credit for the same. Anyone looking at RBI's past record would find it hard to buy this argument.

According to banking sources, the old currency is still lying in the currency chests of the banks. RBI is counting the packets that came from each bank separately. Or will the figure remain a mystery even then?

Along with Patel, RBI Deputy Governor S S Mundra was also present at today's meeting. "Incidents of terror have gone up, after stone pelting there is bullet pelting now, since you haven't been able to count the notes you don't know how much fake currency has been deposited, and as for digitisation, call drops are too common", he is reported to have told Mr. Patel at the meeting. He added that tenders for the purchase of additional currency counting machines were being floated, but that the final count of currency was not complete and therefore he could not share any "firm figure".

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