99.3% of demonetised notes are back; Rs 15.31 trillion returned: RBI

500- and 1000-rupee notes worth Rs 15.41 trillion were demonetised.

DeMonetisation News: As many as 99.3 per cent of the old 500 and 1,000 rupee notes, that was banned overnight in November 2016, have been returned, the Reserve Bank of India said in its annual report.

Of the Rs 15.41 trillion worth 500 and 1,000 rupee notes in circulation before November 8, 2016, notes worth Rs 15.31 trillion have been returned.

The "humungous task of processing and verification of specified bank notes (SBNs) was successfully achieved," it said.

The SBNs received were verified, counted and processed in the sophisticated high-speed currency verification and processing system (CVPS) for accuracy and genuineness and then shredded, it added.

SBNs refer to the demonetised old 500 and 1,000 rupee.
RBI said the processing of SBNs has since been completed. "The total SBNs returned from circulation is Rs 15,310.73 billion".

Read the annual report on → DeMonetisation

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News Source: BS

From 2016 to 2018, life of a Rs 2,000 note; All you need to know

The supply of Rs 2,000 notes has also been reduced substantially since April 2017.

Latest News : For a long time, the government and the Reserve Bank of India were silent on the supply and printing of Rs 2,000 notes. Without clarifying when the printing of Rs 2,000 notes were discontinued, the government recently said supply of these notes in the system were adequate. Business Standard takes a look at the journey of the high-value currency note that was introduced in November 2016 when the government had announced demonetisation of old Rs 500 and Rs 1,000 notes.

2016

• August: RBI’s printing press Bhartiya Reserve Bank Note Mudran Private Limited starts printing Rs 2,000 notes
• November: Prime Minister Narendra Modi announces demonetisation of Rs 500 and Rs 1,000 notes; Rs 2,000 notes are soon supplied in the market
• December: Rs 2,000 notes worth Rs 3,216 billion pumped into the system till December-end; about 58 per cent of the total notes supplied after demonetisation

2017

• March: Rs 2,000 notes amounting to Rs 7,008 billion printed till March 31; RBI’s annual report says Rs 6,570 billion worth notes of Rs 2,000 were in circulation (about 50% in value)
• December: The government says Rs 2,000 notes worth Rs 7,309 billion printed till December 15, indicates no new Rs 2,000 note printed for a while

2018

• February: Minister of State for Finance Pon Radhakrishnan tells Lok Sabha only small denomination currency notes being printed at present.
• On April 17, Economic Affairs Secretary Subhash Garg said Rs 2,000 notes worth Rs 6,750 billion in the system “sufficient” so printing of Rs 2,000 has been halted “since a few days”

Also Read About  → Cash Crunch in India

After note ban, will Modi govt now ban cheque books for its digital push?

CAIT Secretary General Praveen Khandelwal said the government needs to encourage the use of debit and credit cards

 

Business News : After deciding to revoke the legal tender of Rs 500 and Rs 1,000 currency notes in November last year, the Narendra Modi -led central government might now be working on another disruptive step to boost digital transactions — banning the cheque book. A senior functionary of the Confederation of All India Traders (CAIT) on November 16 said the Centre might withdraw the bank cheque book facility in the “near future” to encourage digital transactions.

CAIT Secretary General Praveen Khandelwal said the government needed to encourage the use of debit and credit cards. “In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions,” he said.

Impact of cheque book facility withdrawal

Demonetisation was a big disruption for most Indians, right from poor labourers to big industrialists. Now, the withdrawal of the cheque book facility could have a massive impact as well. Most business transactions are conducted through cheques. According to experts, 95 per cent transactions currently take place via cash or cheques.

Since cash transactions have declined, transaction by cheque might have increased after demonetisation.

Use of cheque in India

Cheques are fairly popular in SME payments. By taking a PDC (post-dated cheque) against the delivery of goods, a supplier secures payments due in future from its customer. People pay by cheques while buying land and house, too.

Many landlords now take rent from tenants via cheque. Since November 8, 2016, digital payments like BHIM have grown. However, their sweet spot has been small-value payments (two to three figures). The retail and commercial payment usage strongly suggests that cheque is a very compelling method of payment for large-value payments (four figures and above).

Click to Read → Cheque Book Ban

99% of banned notes returned after demonetisation

RBI annual report says Rs 15.28 lakh cr of the junked currency came back, leaving only Rs 16,050 cr

 

 

The Reserve Bank of India (RBI) on Wednesday said it estimated that people had returned almost 99 per cent of the scrapped Rs 1,000 and Rs 500 notes after demonetisation, effectively putting a question mark over the government gaining handsomely by the unreturned money turning into a special dividend by the central bank.  → Income Tax Efiling ←

In its annual report, the RBI also said the face value of fake high-value notes was minuscule at Rs 41 crore.

The central bank said people had returned Rs 15.28 lakh crore of the Rs 15.44 lakh banned currency, or 98.96 per cent of the scrapped Rs 500 and Rs 1,000 notes, to the banking system.  → IT Return ←

“Subject to future corrections based on the verification process when completed, the estimated value of Specified Bank Notes received as on June 30, 2017, is Rs 15.28 lakh crore,” the annual report said.
The old notes came to the RBI either directly or from bank branches and post offices through the currency chest mechanism. → Tax Filing ←

Some of these notes were still lying in currency chests, the RBI said, adding it could only estimate the value of the notes and could not provide an accurate figure.

The RBI data showed the unreturned Rs 1,000 notes in March 2017 amounted to Rs 8,900 crore. The segregation of old and new Rs 500 notes were not that clear. The RBI incurred a cost of Rs 7,965 crore in printing notes in .... Read Full Article

Note ban attacked black money, raised tax base: PM in I-Day speech

Said GST led to a 30% cut in travel time by trucks but didn't mention contraction in July IIP

 

 

Prime Minister Narendra Modi, from the ramparts of the Red Fort, rolled out statistics to defend demonetisation, while skipping mention of a lower dividend by the Reserve Bank of India (RBI) as a pitfall of this move.

In his Independence Day speech, Modi implicitly took on critics for blaming his government for not generating jobs, saying the MUDRA scheme is making youth a provider of jobs.

He said the goods and services tax (GST) has led to a 30% cut in travel time by trucks, but did not refer to the transitory problems that have led to a contraction of the Index of Industrial Production (IIP) and Purchasing Managers’ Index (PMI).

He recalled that the first task of his dispensation was to constitute a special investigative team to underscore his government’s stance on corruption.

“I want to tell the countrymen proudly that we have confiscated black money worth Rs 1.25 lakh crore. The culprits would be brought to book and forced to surrender,” he said.

He said demonetisation, which followed the government’s earlier anti-black money stance, has achieved several milestones. → Income tax efiling ←

“The hidden black money has been brought into the formal economy. According to the research conducted by outside experts, about Rs 3 lakh crore that had never come into the banking system before, has been brought into the system after demonetisation,” he said.

More than Rs 1.75 lakh crore deposited in banks is under scanner. Black money worth Rs 2 lakh crore had to be deposited in banks and this system has forced them to be accountable, he added.

The number of new taxpayers efiling  of income tax (I-T) returns from April 1 to August 5 - the extendable deadline for filing tax returns - is 5.6 million, while in the same period last year, only 2.2 million filed returns.... Read Full Article

PokemonGo to Rio2016: The top five social media trends in 2016

A selection of events that played out big on social media in the year 2016

Latest News - The year 2016 is nearly over and, like previous years, this one also saw some good, some bad and some strange stuff on social media.

It is not unusual for people to comment on the speed with which an entire year went by, that does not, however, mean that the year was not full of action. Here is a recap of some of the major topics that  top trended on social media 2016 to help refresh your memory:

#Brexit

To stay or leave? In June this year, British citizens voted to answer this question about Britain’s membership of the European Union. In an event that sent shockwaves around the world, 52 per cent of the voters who participated in the ......

 

#PokemonGo

In July this year, Niantic released an augmented reality game for mobile phones and people all over the world left their homes in search of imaginary creatures called Pokémon. Gamers tried to locate and...

 

#Rio2016

The year 2016 happened to be one of the 31st Olympic games in the city of Rio de Janiero, Brazil. Just like Pokemon Go, #Rio2016 was a global phenomenon that became one of the biggest trends this year...

 

#Trump

The year 2016 was also one of the US Presidential election, and it was an engrossing battle between the Democrats and the Republicans. Democrat Hillary Clinton fought with all her might but.......

 

#Demonetisation

If you thought #Brexit was a prank that went too far, wait till you hear about this one! It was November 8, 2016, when Prime Minister Narendra Modi announced on national television that the currency notes of Rs 500 and Rs 1,000......

 Read Article Source>>>

 

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Full text: RBI exempts all KYC accounts from Rs 5,000 deposit norms

Central bank Withdraws provisions for questioning deposits in in fully KYC-compliant bank accounts

News Latest The Reserve Bank of India on Wednesday exempted Know Your customer (KYC) compliant accounts from the new rules on deposits of above Rs 5000 .

No questions will be asked for deposits of old notes of Rs 500 and Rs 1,000 above Rs 5,000 for KYC accounts.

Breaking news, In a message sent to all banks,  the RBI said it had reviewed its instructions and decided that the rule will not apply to KYC-compliant accounts.

RBI had earlier imposed restrictions on the quantum of old notes that can be deposited in bank accounts.Old notes up to the Rs 5,000 limit received across the counter would be allowed to be credited into bank accounts in the normal course until December 30, the RBI had clarified. In the due course of Demonetisation, RBI had also said that the depositor has to give an explanation as to why the old notes were not deposited earlier. The amount will be credited in the bank account only after receiving a satisfactory explanation.

Analysts had said the move would add to the woes of those still waiting to deposit old notes. However, officials said people with money that was accounted for had no cause to worry.

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The great Indian jugaad: How some are beating the Rs 1000 note ban

Even as the Modi government on Tuesday declared that Rs 500 and Rs 1,000 would no longer be legal tender, the average Indian, with his prowess in the art of jugaad, found ways to beat the system, thanks to a 50-day window given for exchange of these banknotes.

Despite the panic visible across all cities, there always are some opportunists ready to take advantage of someone’s desperation. They always find ways to play the system. And, in this case, they have turned religious places, non-government organisations (NGOs) and gold jewellers into laundering centres. At many places, even the retail shops have become money-exchange centres, they are giving Rs 400 in exchange for Rs 500 notes. Even some bank managers are getting offers for a 20 per cent cut in lieu of exchange of Rs 500 and Rs 1,000 notes.

So, what are the ways and means the hoarders are employing to get rid of their old notes? Business Standard documents the ways that have come to light so far:

1. Buying gold
2. Paying salary in advance
3. Praising the lord
4. Banking on the Jan Dhan Yojana
5. Falling back on the family
6. Taking the hawala route
7. Offering a 20% cut to bankers
8.  Getting luxurious at gyms, salons and bars

However even as black-money hoarders scurried to offload their cache via sales of cash, distress bullion buying and questionable currency swaps, the taxman soon played catch-up by conducting raids on jewellers and suspected hawala operators across Mumbai, Delhi and parts of Punjab through Thursday.

 

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