SBNs refer to the demonetised old 500 and 1,000 rupee. For instance, parts of the Rs 10,000 crore could lie with money seized by law enforcement, cash still being held with district cooperative banks and in bank notes being held by citizens of Nepal and Bhutan.
"Whether demonetisation has failed or not depends on its objective".
After the note ban, old junked notes, called specified bank notes (SBNs), were allowed to be deposited in banks with unusual deposits coming under income tax scrutiny. Indian economy lost 1.5 per cent of GDP in terms of growth.
According to the report, after verification and reconciliation, the total value of the Rs. 500 and Rs. 1,000 notes as on November 8, 2016, when demonetisation was announced, was Rs. 15.41 lakh crore. The thinking behind this theory was that if a certain amount of the demonetised currency didn't come back into the system - if it was dumped in a river or burnt to ashes because its owners were afraid of being caught with black money - it would reduce the RBI's liabilities. Over 100 lives were lost.
"SBNs (specified banknotes) were received by the Reserve Bank either directly or from bank branches/ post offices through the currency chest mechanism. Thus, there is a 5.8 per cent, or Rs 1 lakh crore, shift in favour of small denomination currency notes", said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI. This meant just Rs 10,720 crore of the junked currency did not return to the banking system.
Mumbai: Indians have deposited almost all the Rs 500 and 1000 notes invalidated after the Narendra Modi government's demonetisation move in November 2016, the Reserve Bank of India (RBI) said in its annual report for 2017-18 after a count that lasted nearly two years.
The RBI also said the value of banknotes in circulation stands at 18 lakh crore till the end of the last fiscal. Instead, a new Rs 2,000 notes were introduced post note ban.
In a series of tweets, the former finance minister also said RBI figure has suggested that the government had actually demonetised only Rs 13,000 crore and the "country paid a huge price" for it. "The entire trade sector functions on cash, a sizeable portion of which is black money".
Quoting RBI report, the Trinamool Congress supremo said 99.3 per cent of the demonetised money has come back to the banking system. "The total value of SBNs returned from circulation is Rs 15,310.73 billion".
"The value of banknotes in circulation increased by 37.7 per cent over the year to Rs 18,037 billion at March-end 2018", it said.