India’s demonetisation fails to flush out cash

India’s big gamble to ban its largest denomination notes failed to flush out stockpiled cash, according to data from the country’s central bank.

The 500 and 1,000 rupee (£5.40 and £10.80) notes were withdrawn in August 2016, leaving just weeks for the public to bank their cash, resulting in bank queues and riots that left nearly 100 people dead. The Reserve Bank of India said 99.3 per cent were returned to banks, rather than being spent in the wider economy as Narendra Modi, the prime minister, had hoped.