Moneycontrol
Nov 29, 2016 06:47 PM IST IST | Source: Firstpost.com

Demonetisation: Modi govt says it strikes black money; RBI data says otherwise

On November 8, Prime Minister Narendra Modi announced demonetisation scheme with the aim of unearthing black money as well as curtailing terror funding and curbing counterfeit currency.


On November 8, Prime Minister Narendra Modi announced demonetisation scheme with the aim of unearthing black money as well as curtailing terror funding and curbing counterfeit currency.

After the implementation, news of banned Rs 500 and Rs 1,000 been thrown into the rivers and bins took the limelight. However, a news report by the Firstpost reveals that most of this black money is likely to enter the banking system as white money.

According to the RBI, since the 8 November announcement, currency notes worth Rs 8.11 lakh crore have been deposited in banks and Rs 33,498 crore (3 percent) have been exchanged. So, currency notes worth 60 percent of the total outlawed currency has already entered the system.


But, this does not mean 40 percent cash is still with people. Some portion of it was already with banks -- in the form of cash held in ATM machines and in bank chests.

To read the full report, click here...
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