BANK STAFF COME UNDER SCRUTINY

AS PER ANALYSIS, THE ESTIMATE OF `14.18 LAKH CRORE CURRENCY IS BASED ON MARCH 2016 DATA

27 PSU bank officials suspended for corrupt practices.

State Bank of India has estimated that money worth `2.5 lakh crore may not come back into the banking system post demonetisation of high-value notes.

On November 8, the government banned banknotes of `500 and `1,000 worth over `14 lakh crore from the economy.

In a report, the Economic Research Department of SBI said “around `2.5 lakh crore on a conservative basis will not be coming back into the system”.

As per the SBI analysis, the market estimate of `14.18 lakh crore currency — excluding cash with banks — is based on March 2016 data while in reality it should be based on data available as on November 9, a day after demonetisation was announced.

SBI also noted that going by data as on November 9, the amount of high currency denomination notes was `15.44 lakh crore (excluding cash in the banks), an increase of `1.26 lakh crore compared to the March figure.

It stated that RBI has published twice the deposited and exchanged notes data with banks in November with a gap of 9-days. SBI said: “If we closely look at the data, the daily working day average deposited/ exchanged at banks has declined significantly from `60,500 crore (November 10-18) to `50,100 crore (November 19-27) — a decline of 17 per cent.” In total, between November 10 and November 27, `8.44 lakh crore were deposited and exchanged in banks, the report said.

“All these estimates put together show that total money coming into the system in the form of high denomination will be around `13 lakh crore (as against `15.44 lakh crore high value notes as on November 9),” it added.

I have least doubt in my mind that (one year from now) you will have a bigger economy, higher GDP, cleaner GDP. Therefore, all these collectively could contribute a lot as far as GDP is concerned — ARUN JAITLEY, Finance minister