RBI: Almost all demonetised notes back in system

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RBI: Almost all demonetised notes back in system
A total of Rs15.28 trillion was returned to the central bank through lenders.

mumbai - Indians returned almost all of the estimated ?15.4 trillion in high-currency bills removed from circulation

By Reuters

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Published: Wed 30 Aug 2017, 8:18 PM

Last updated: Thu 31 Aug 2017, 4:55 AM

Indians returned almost all of the estimated Rs15.4 trillion ($242 billion) in high-currency bills removed from circulation in a shock move late last year, the Reserve Bank of India (RBI) said on Wednesday.

A total of Rs15.28 trillion was returned to the central bank through lenders, a number that could renew scrutiny about the effectiveness of the measure announced by Prime Minister Narendra Modi in November.

By rendering Rs500 and Rs1,000 illegal in one stroke and imposing restrictions on how the money could be returned to lenders, Modi had been intending to make it difficult for hoarders of undeclared wealth, or black money, to exchange their undeclared cash for legal tender.

But economists have said the measure has had positive impact as well, including bringing in cash into the banking system, and lowering the cost of loans.


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