Saturday, 11 August 2018

What happened to your demonetised notes? Will Rs 2...

Nearly two years after the announcement of demonetisation, the government on Friday said that the Reserve Bank of India (RBI) has completed the verification of demonetised notes and that the number of demonetised notes deposited was not more than issued, TV news channels reported citing news agency Cogencis.

The government also said that the currency notes of Rs 500 and Rs 1,000 that became redundant after the noteban were verified and then destroyed by the central bank. Last year, an RBI report said that 99% of total demonetised notes came back into the banking system.

While it is not yet clear where the buzz of withdrawal of Rs 2,000 currency notes originated from, the government has reiterated that there is no proposal to withdraw the high-value notes issued after demonetisation. Last year, Arun Jaitleyalso told the Parliament in a written reply that there was no proposal to withdraw Rs 2,000 notes.

In March this year, Andhra Pradesh Chief Minister Chandrababu Naidu demanded to ban on high-value notes, saying that it will help prevent corruption in elections. Chandrababu Naidu, who was an ally of the NDA-led government, criticised the decision to introduced Rs 2,000 notes in the system, another high-value note in behalf of Rs 1,000.

In April, some states faced cash crunch as ATMs ran dry, which government said was due to an “unusual spurt in demand” due to the financial year end and festivities. The cash crunch was blamed on the inadequate number of Rs 2,000 notes and that ATM cassettes were not configured to dispense smaller Rs 200 notes.

Source - FE