Almost 99 percent of demonetised currency is back: RBI -Governance Now

Almost 99 percent of demonetised currency is back: RBI

The volume of banknotes increased by 11.1 percent, mainly due to higher infusion of banknotes of lower denomination in circulation following demonetisation

GN Bureau | August 30, 2017

#demonetisation #currency #RBI #annual report

(Illustration: Ashish Asthana)

As much as Rs 15.28 lakh crore out of Rs 15.44 lakh crore of the scrapped currency has come back, the Reserve Bank of India said on Wednesday.

RBI released its annual report 2017 which said that the volume of notes in circulation continued to increase till November 8, 2016 when the government notified that banknotes of Rs 500 and Rs 1000 denominations of the existing series shall cease to be legal tender with effect from November 9, 2016.

The report said that simultaneously, a new series (Mahatma Gandhi New Series) of banknotes of a different size and design, highlighting the cultural heritage and scientific achievements of the country, was introduced. In view of the withdrawal of legal tender character of nearly 86 percent of value of notes in circulation on November 8, 2016, the focus of the Reserve Bank subsequently shifted to making available banknotes generated from printing presses to currency chests and from there to bank branches and ATMs in the shortest possible time.

This process was facilitated by air lifting of notes as also direct remittances from the presses to currency chests wherever feasible and adopting a hub and spoke model of distribution.

As a result, during a short span from November 9 to December 31, 2016, the Reserve Bank pumped in 23.8 billion pieces of bank notes into circulation aggregating Rs 5,540 billion in value. The pace of remonetisation continued ceaselessly thereafter also and the notes in circulation (NiC) as on March 31, 2017 increased close to 74 percent of the NiC prevailing on November 4, 2016.

RBI said that sustained efforts were made towards indigenisation of banknotes production along with enhanced security features during the year. The Bank Note Paper Mill at Mysuru started commercial production. Efforts towards a greenfield project for production of security inks were also undertaken.

The report went on to say that the value of banknotes in circulation declined by 20.2 percent over the year to Rs 13,102 billion as at end-March 2017. The volume of banknotes, however, increased by 11.1 per cent, mainly due to higher infusion of banknotes of lower denomination in circulation following the demonetisation. In value terms, the share of Rs 500 and above banknotes, which had together accounted for 86.4 percent of the total value of banknotes in circulation at end-March 2016, stood at 73.4 per cent at end-March 2017.

The share of newly introduced Rs 2000 banknotes in the total value of banknotes in circulation was 50.2 percent at end-March 2017. In volume terms, Rs 10 and Rs 100 banknotes constituted 62.0 percent of total banknotes in circulation at end-March 2017 as compared with 53.0 per cent at end-March 2016.

Comments

Other News

At Davos, Maharashtra inks MoUs worth Rs 15.70 lakh crore

The Maharashtra government has signed 54 memorandums of understanding (MoUs) worth Rs. 15.70 lakh crore at the ongoing WOrld Economic Forum in Davos. The highest ever investment proposals of the state government are expected to generate 15.95 lakh jobs. The largest MoU was inked with Relianc

How Renewable Energy revolution is sweeping across India

As India accelerates its transition towards a sustainable future, its renewable energy (RE) sector has witnessed unprecedented growth. In 2024, the country made significant strides in solar and wind energy installations, policy advancements, and infrastructural improvements, setting the stage for ambitious

Celebrating ten years of Beti Bachao Beti Padhao

The ministry of women and child development is set to celebrate the 10th anniversary of the Beti Bachao Beti Padhao (BBBP) campaign, marking a decade of relentless efforts to protect, educate, and empower the girl child in India. This milestone aligns with the vision of a Viksit Bharat 2047 and the global

Bhashini provides translation support at this great congregation of languages

The Ministry of Electronics and Information Technology (MietY) has offered technological support at the Maha Kumbh in Prayagraj being held from January 13 to February 26, 2025 with the integration of Bhashini for multilingual accessibility. ‘Digital Lost & Found Solution&rs

CSIR’s new Innovation Complex to foster translational research, industry collaboration

India is home to many small and big industries where research is carried out, yet many innovators are not able to find a platform to bring their ideas into fruition. Despite having a vast network of government laboratories that perform ground breaking research, these innovations struggle to translate into