BUSINESS

Estimates Of Demonetised Notes Back With Banks May Be Incorrect, Says RBI

The RBI is taking all steps to complete the process expeditiously so as to release firm figures of SBNs.

05/01/2017 5:42 PM IST | Updated 05/01/2017 5:56 PM IST
AFP/Getty Images

MUMBAI -- Reacting to media reports about the quantum of demonetised currency that has been returned to the banks by the 30 December deadline, the Reserve Bank of India on Thursday said such estimates may not be correct.

The RBI said the aggregating of accounting entries made at the various currency chests still requires to be reconciled with the actual cash balances in order to eliminate accounting errors and double counting.

"The periodical SBN (specified bank notes) figures released by us were based on aggregation of accounting entries done at the large number of currency chests all over the country," an RBI said in a statement in Mumbai.

"Now that the scheme has come to an end on 30 December, 2016, these figures would need to be reconciled with the physical cash balances to eliminate accounting errors/possible double counts etc. Till this is completed, any estimate may not indicate the actual numbers of the SBNs that have been returned," it said.

The RBI is taking all steps to complete the process expeditiously so as to release firm figures of SBNs received at an early date.

On 8 November, Prime Minister Narendra Modi announced that ₹1,000 and ₹500 currency notes were no longer a legal tender, saying the move was aimed at eliminating black money, counterfeit currency and terror financing. Citizens were given up to 30 December to deposit the old currency in banks.

Media reports on Wednesday, citing sources, said that about 97% of the demonetised currency notes worth ₹14.97 lakh crore have been deposited back as on 30 December. The government had earlier estimated that about ₹15.4 lakh crore was to be taken out of the system by way of demonetisation.

Also on HuffPost India:

'Indica: A Deep Natural History Of The Indian Subcontinent' Is More Compelling Than Sci-Fi

More On This Topic