Even the government's demonetisation exercise has met with criticism in certain sections of the intelligentsia, its success will be measured once the tax authorities nail the suspicious deposits and hold the depositors accountable, according to R Gandhi, former Reserve Bank of India (RBI) Deputy Governor. "That is 1%. Shame on RBI which 'recommended" demonetisation. He called the note ban move a total failure.
The data has given the Opposition ammunition to attack the Narendra Modi government, which has been bullish on the note ban exercise.
When asked if he was being excessive with his criticism of demonetisation, Chidambaram said that his view was based on facts.
In a series of tweets, Congress communications department incharge Randeep Singh Surjewala took jibes at the Prime Minister while referring to his Independence Day speech in which he had said that black money of Rs 3 lakh crore had been unearthed after demonetisation. "Was demonetisation a scheme created to convert black money into white? he asked in another tweet".
Das was reported to have also said that once the final counting is done, he expects the figure to be much lower. Note-ban has not brought about any welcome change that wouldn't have been possible without the damage that it caused.
As a result of demonetisation, the number of IT returns (ITRs) filed has gone up by 24.7%, advance tax collections of Personal Income Tax have gone up by about 41.79% and Personal Income Tax under Self Assessment Tax () has gone up by 34.25%. The report revealed that 98.96 percent - or Rs 15.28 lakh crore out of the Rs 15.44 lakh crore - invalid currency notes had come back into the banking system by the end of June 2017. "To ensure availability of bank notes across the country at the shortest possible time subsequent to the demonetisation, bank notes had to be frequently air-lifted from the presses".
As on November 8, 2016 there were 1,716.5 crore pieces of Rs 500 and 685.8 crore pieces of Rs 1,000 in circulation, totalling Rs 15.44 lakh crore.
"Subject to future corrections based on verification process when completed, the estimated value of specified bank notes (SBNs) received as on June 30, 2017 is Rs 15.28 trillion", the central bank said. The government had then expected that a large part of this money would not come back, believing that it was black.
Demonetisation affected the common man badly, especially those belonging to the lower income group, who lost their jobs and were compelled to stand in serpentine queues to get their own money, the Congress leader alleged.
Sources also said that during the hour-long meeting, Modi also reviewed the works of the ministries held by the ministers of both the states. They are not getting the real motive behind the whole practice of banning the currency he said.
Citing the RBI report for 2016-17, "which gave the lie to the tall claims of the Union government", Mr. Narayanasamy said 99% of the junked notes had been replaced.
The conventional explanation for this is that most people who had black money found other people, who did not have black money, to deposit their savings into the banking system for them. The RBI had to incur Rs 45 billion higher printing costs than in FY2016 on the back of 37% higher supply of notes as well as higher freight costs.