Thank you rbi now lift the veil on old notes

Thank you rbi now lift the veil on old notes

The Reserve Bank of India (RBI) has officially lifted all limits on savings bank cash withdrawals after the note ban. This is welcome. Now is the right time to lift the veil of secrecy over how many old notes that had been held by the public came back to the banking system and how much money failed to come back. The money that did not come back is the amount of black money that people have been forced to extinguish, in order to escape investigation into tax avoidance and/or sources of the income. That would be a ready measure of the demonetisation scheme’s success in achieving the stated goal of destroying black money.
The RBI should also allow one more window for resident Indians to deposit their holdings of denotified currency notes. There are individuals, especially old folk only intermittently in touch with other people or reality in general, who failed to deposit their holdings of cash in time. There are others who have come into possession of wads of denotified currency that had been hoarded by their dear departed.
The 50-day demonetisation period for residents to deposit their old currency notes with banks ended on December 30. The result has been to see serious erosion of savings of some individuals, admittedly small in number but deserving of extra consideration because of the vulnerability of their age and finances in most cases. The funds coming in through a reprieve window could be subjected to extra scrutiny, to thwart misuse. The amounts are likely to be small, but the benefit to their holders, big.
The denotified Rs500 and Rs1,000 notes constituted 86.9% of the value of total currency in circulation. The RBI had said that Rs8.45 lakh crore was deposited and exchanged during November 10-27, but did not release any further data. The Budget offered some figures but not the full data. There is no reason to withhold information on deposits now that the possible political sensitivity of such data is pure conjecture, as the assembly elections are over and settled any questions about the political viability of the move once and for all.