RBI Says 99.3 Per Cent Of Demonetised Notes Were Returned; Increase In Counterfeit Notes In Small Currencies Currency notes of Indian one hundred rupee and five hundred rupees (Photo by Rajkumar/Mint)

The Reserve Bank of India (RBI) in its annual report of 2017-18 has stated that 99.3 percent of demonetised were returned to the banks. The RBI confirmed the processing and verification of the demonetised notes was complete and that the same was achieved through sophisticated high speed currency verification and processing system (CVPS).

The RBI report also stated that there was an increase in the number of counterfeit notes detected in the denominations of Rs 100 and Rs 50. While there was a 35 per cent increase in counterfeit Rs 100 notes, the corresponding figure for Rs 50 notes was approximately 154.3 per cent.

On an unrelated but positive note, the RBI has noted the resilience of the Indian economy with a noticeable upturn in the construction and investment sectors for the fiscal year ending on 31 March 2018.

In the longer reading of the demonetisation exercise, it is apparent that the benefits were far outweighed by the negatives and the RBI report confirming that 99.3 per cent of demonetised notes were returned only confirms that. The weeding out of counterfeit currency and black money was one of the main goals of the entire exercise which does not seem to have been achieved.

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