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P. Chidambaram Condems Demonetization As Scheme To Convert Black Into White Money As RBI Releases Report Of 99% Banned Notes Returned

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The Reserve Bank of India (RBI), in a report, has revealed the exact amount of money which was returned to the banks after demonetization.  It was revealed that all except 1 percent of the banned currency notes were not returned to the bank after demonetization.

As soon as the report was published, former finance minister P.Chidambaram criticized RBI for recommending demonetization and said that it was a scheme for converting black money into white.

Months after demonetization, the RBI has finally confirmed that 1.4 percent of the old Rs 1,000 notes worth 8.9 crore did not return to the banking system. According to reports from The Indian Express, RBI has released a report confirming that out of the 15.44 lakh crore worth of old notes that were present in the market during the demonetization period, Rs 15.28 lakh, crore worth of old notes had been returned to the bank.

Notably, the government decided to carry out demonetization of Rs 500 and Rs 1000 note on Nov. 8, 2016 to wipe out blank money from the country. As a result, Rs 500 and Rs 1000 currency notes were banned. Though the old Rs 500 notes were replaced with new ones, Rs 1000 notes were not replaced. Instead, new Rs 2000 notes were introduced in the market. The RBI has now also started printing new Rs 200 notes.

Nevertheless, the government had to spend Rs 7,965 crore in the financial year 2016-2017 for printing these new currency notes, which is way higher than the previous year, when only Rs 3,421 crore was spent in printing currency notes. This has not gone down well with ex-finance minister P. Chidambaram who reacted to the RBI reports through a series of tweets.

He said that the RBI should feel ashamed for recommending demonetization where it lost 1% of the money and also spent extra money in printing new currency notes.  He further accused demonetization of being a scheme that helped turn black money into white. He explained that though RBI gained Rs 16000 crore, it also lost Rs 21000 crore.

 

 

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