No info on black money removed by note ban, RBI tells Par panel

NEW DELHI: The Reserve Bank of India (RBI) has told a parliamentary panel that it has “no information” on how much black money has been extinguished as a result of demonetisation or about unaccounted cash legitimised through the exchange of currency post note ban.

Stating that an estimated ₹15,280 crore in junked notes has come back “subject to future corrections based on verification process”, RBI also said it has “no information” on whether demonetisation was being planned to be implemented at regular intervals.

The central bank has been facing flak from Opposition parties for demonetisation and delay in disclosing figures on the junked notes, even as the government has maintained that the decision to ban ₹500/1,000 notes in circulation has helped in curbing black money, among other benefits.

In its annual report released last week, RBI made public the details of the junked notes that have come back into the system, putting the figure at ₹15,280 crore. The same figure has now been shared with the Parliamentary Standing Committee on Finance.

Replying to queries from the panel, RBI said the verification for authenticity and numerical accuracy was still on, while some of the specified bank notes (old ₹500/1,000 notes), which were accepted by banks and post offices were still lying in currency chests. The central bank also informed the panel that the completion of the process of verification will take time in view of the large volume involved.

The process is “going on in full swing” with most RBI offices working in double shifts and with the help of high-end verification machines, the central bank said. “Till such time, these notes are processed by RBI, their numerical accuracy and authenticity, only in estimation of SBNs received back is possible. Subject to future correction, based on the verification process when completed, the estimated value of SBNs received as on June 30 is ₹15.28 lakh crore,” RBI said.