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)
(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

In Maharashtra, a wave of aid for the needy

In Maharashtra, the epicentre of India’s devastating second wave, several NGOs and civil society organisations have been at work to combat the pandemic – by spreading awareness about precautions, by helping the slum-dwellers book appointment for vaccine, by providing meals to the marginalised a

Daily recovery averages 3.28 lakh cases in 10 days

The cumulative number of Covid-19 vaccine doses administered in the country has crossed the landmark of 17 crore on Monday as the Phase 3 of the nationwide vaccination drive expands further. India is the fastest country to administer 17 crore Covid vaccine doses – China took 119 days and USA 115 days

“UP situation extremely bad, govt hiding data”

India is battling the second wave of Covid-19 and infections are spreading into the interiors of the country, says Dr Anurag Bhadouria, National Spokesperson, Samajwadi Party. It is precipitated by the elections in five states, the Kumbh Mela in Haridwar and also panchayat elections in many states, he says

CoWIN to have new security feature from Saturday

The CoWIN system, the overarching digital platform for citizens seeking appointment for the Covid-19 vaccine, is introducing a new four-digit security code” in the application from Saturday to minimise a peculiar error and subsequent inconvenience to citizens. “It has been notic

Learn from Mumbai model to manage oxygen supply: supreme court

Mumbai, once the epicentre of the pandemic in India, has emerged as a model for all others in mitigating the crisis. The supreme court on Wednesday said the central government should adopt and take lessons from the Mumbai model to manage liquid medical oxygen supply for Covid-19 patients in Delhi.

‘What do they know of history who only history know?’

A Functioning Anarchy? Essays For Ramachandra Guha Edited by Srinath Raghavan and Nandini Sundar Penguin Random House India / 392 pages / Rs 650 In a long and versatile career spanning thirty-five years, Ramachandra Guha has prod

Visionary Talk with Dr. Ashok Seth, Padma Bhushan Awardee & Chairman, Fortis Escorts Heart Institute On Tackling Corona



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter