Business Standard

RBI says no info on black money extinguish­ed

- PRESS TRUST OF INDIA

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 the demonetisa­tion of ~500 and ~1,000 notes or about unaccounte­d cash legitimise­d through exchange of currency. Stating that an estimated ~15,280 crore in junked notes has come back ,“subject to future correction­s based on verificati­on process”, the Reserve Bank also said it has “no informatio­n” whether demonetisa­tion is being planned to be implemente­d at regular intervals.

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 of ~500/1,000 notes or about unaccounte­d cash legitimise­d through exchange of currency after the note ban.

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

The RBI has been facing flak from the opposition parties for demonetisa­tion and delay in disclosing figures on the junked notes, even as the government has maintained that the November 8, 2016 decision to ban ~500/1,000 notes in circulatio­n at that time has helped in curbing black money, among other benefits.

Last week in its annual report, the RBI finally 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, the RBI said the verificati­on for authentici­ty and numerical accuracy are still on, while some of the specified bank notes (old ~500/1,000 notes) which were accepted by banks and post offices are 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.

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