Economic Affairs Secretary S.C. Garg. Photo: Mohd Zakir/HT
Economic Affairs Secretary S.C. Garg. Photo: Mohd Zakir/HT

Demonetisation achieved its objectives substantially, says govt

Demonetisation helped in checking black money, promoting digital transaction and weeding out fake notes: Economic Affairs Secretary S.C. Garg

New Delhi: The government today said the demonetisation of 500 and 1,000 notes in November 2016 achieved the objectives “quite substantially", even as the Reserve Bank of India report outlined that 99.3% of junked notes came back to banks.

Economic Affairs Secretary S.C. Garg said the objectives of the note ban such as checking black money, terror financing, promoting digital transaction and weeding out fake currency notes had been achieved. “I think demonetisation has achieved its objective quite substantially."

According to the RBI’s annual report released today, as much as 99.3% of the junked 500 and 1,000 notes have returned to the banking system.

Garg also said there was no shortage of currency notes in any part of the country. On 8 November 2016, Prime Minister Narendra Modi announced the demonetisation of high-value currency notes. Of the 15.41 lakh crore worth 500 and 1,000 notes in circulation on 8 November 2016, when the note ban was announced, notes worth 15.31 lakh crore have been returned. This meant just 10,720 crore of the junked currency did not return to the banking system.

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