Note ban not a failure? Rs 3L cr put into 2 cr new accounts: FIU

Moneycontrol BureauAt a time when dark clouds are looming over the government for its decision to roll-out the demonetisation scheme, the data from Financial Intelligence Unit (FIU) may be a reason to cheer. As per the data, between November 15 and December 25, 2016, 2.10 crore bank accounts were created and over Rs 3 lakh crore was deposited in them, reports The Economic Times. Of the amount deposited, around Rs 50,000 crore was cash deposit, and Rs3 lakh crore was non-cash deposit (cheques, drafts, etc). While the centre is being lashed at for the pain caused due to cash crunch, the government asked for the FIU data to analyse the impact of declaring high-value notes illegal tender.Officials in the knowledge of this data said the fact that a huge proportion of extinguished cash has come back into the system is not a sign of failure, but a testament to the policy’s success in formalising the economy. "The amount of money that has come back wouldn’t have come back even in the next five years," said a senior official.The official said after two years, only 20 crore bank accounts under Jan Dhan were opened, but post demonetisation, “with no extra effort, we have seen around three crore new bank accounts getting opened in a month.” He also said the rush of money coming in shows black money holders had no choice but to enter the banking system since the other two options were buying gold or destroying old high denomination notes.