Shame on RBI which 'recommended' demonetisation: Chidambaram

RBI says got back almost all of banned currency notes

"Reality-RBI data released today proves only Rs 16000Cr out of the 15.44 Lakh Cr money in circulation came back".

When asked about the government's demonetization, the former RBI governor Raghuram Rajan had said: "My sense is the clever find ways around it". "When note ban was announced, it promised two things".

Narendra Modi had also claimed that the note ban will curb the terror funding and will break the backbone of terrorism and Naxalism.

"The Prime Minister and Finance Minister should answer this, else this would be the biggest corruption in Indian history", he added.

Jaitley questioned the knowledge on black money and its relation with the demonetised currency adding that the demonetisation's objective was also to create a digital economy and India was moving in the right direction.

Modi said that in November, notes of 500 and 1,000 rupees had been declared invalid, thereby bringing black money back into the economy in large quantities.

The amusing thing is that there were no estimates of how much black money was held in the form of cash.


Das was reported to have also said that once the final counting is done, he expects the figure to be much lower. The economist behind the demonitisation move deserves nobel prize.

Another stated aim of the demonetisation drive was to increase the tax base. 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.

Expectedly, such notes have effectively been held back from depositing with banks or even destroyed during the remonetisation exercise or are still being held by criminals and anti-socials hoping to recirculate these through some channels some day. To which Chidambaram quoted a number saying: "In November 2016, electronic payment was Rs 94 lakh crore, in May 2017 (after six months of note ban) it has come back to Rs 94,21000 crore. The Reserve Bank figures yesterday exposed the falsehood propagated by the government", he said. People holding these notes had to deposit them in their bank accounts. In his address, Modi had said, in the last three years, more than Rs. 125,000 crore black money has been caught. Expenditure on currency printing increased to Rs 7,965 crore in 2016-17 as against Rs 3,420 crore in 2015-16. "The fallout of demonetisation is on predicted lines... the fact that money got deposited in banks doesn't make it legitimate money", Jaitley claimed.

The RBI annual report said that "subject to future corrections based on verification process when completed, " the estimated value of the banned notes it "received" was Rs15,28,000 crore.

Experts warned the government repeatedly that most of the black money was held not in cash, but in real estate, gold and securities.

"The upsurge in expenditure during the year was on account of change in the production plan of printing presses due to the introduction of new design notes", the central bank said in its annual report.

We can not be certain if indeed the note-ban troubled the black money riches against whom it was devised, but we know for sure that common people went through hell (sometimes, even death) and may still fall victim to the risk of "inspector raj" as government will try to push up its tax collections by all means.

Related News:

  • Unnamed Xiaomi Smartphone Announced for September 5 Release

    Unnamed Xiaomi Smartphone Announced for September 5 Release

    One sensor has an aperture of f/2.2 and captures RGB shots, while the other 12MP sensor has a telephoto lens with f/2.6 aperture. Xiaomi India on Monday shared a teaser image about the Xiaomi's next smartphone launch event on its official Twitter account.
    Trump Administration Imposes New Economic Sanctions on Venezuela

    Trump Administration Imposes New Economic Sanctions on Venezuela

    President Maduro's "officials are now resorting to opaque financing schemes and liquidating the country's assets at fire sale prices", one official said.
    Gionee X1 Debuts In India With An Affordable $140 Price Tag

    Gionee X1 Debuts In India With An Affordable $140 Price Tag

    The mobile device also packs sensors on board including an accelerometer, ambient light sensor, and proximity sensor. RAM and Internal Storage of Gionee X1 - Talking about the RAM and storage of the phone the phone comes with 2GB RAM.
  • Cowboys' Ezekiel Elliott racks up 24 total yards in preseason debut

    Cowboys' Ezekiel Elliott racks up 24 total yards in preseason debut

    For Dallas Cowboys running back Ezekiel Elliott , this may be the last time he plays a snap until late October. Against Oakland, Elliott had six carries for 18 yards, and he caught two passes for six yards.
    Three men charged in Charlottesville attacks on counterprotesters

    Three men charged in Charlottesville attacks on counterprotesters

    Harris left the rally with eight stitches in his head, lacerations, a broken wrist and a chipped tooth from the brutal assault. If you have any information regarding the whereabouts of Ramos, contact the Charlottesville Police Department at 434-970-3280.
    Partly sunny, high near 67 — TODAY'S FORECAST

    Partly sunny, high near 67 — TODAY'S FORECAST

    After Wednesday , high temperates are expected to be in the upper-70s for the next week, with nighttime lows in the 50s. Wednesday will be slightly cooler, with a high of 81 degrees and a low of 58 degrees.
  • Trump Administration Just Booted More Russian Diplomats From the US

    Trump Administration Just Booted More Russian Diplomats From the US

    The administration said there was no decision on whether the Russian government would be allowed to take back those facilities. The move comes a month after Russian President Vladimir Putin ordered 755 American diplomatic staff to leave Russia.
    Valve confirm Steam support for Windows VR headsets

    Valve confirm Steam support for Windows VR headsets

    The ASUS Mixed Reality Headset sports an "digital industrial" design language, sporting an outer design comprised of 3D polygons. Whether Microsoft achieves that goal - with Apple, Google, and Facebook all ramping up the competition - remains to be seen.
    Tim Cook: Apple will invest $1.3 billion in Iowa

    Tim Cook: Apple will invest $1.3 billion in Iowa

    The 400,000-square-foot center will be used to support iMessage, Siri , the App Store and other Apple services in North America. The Des Moines Register reported Thursday that Apple's been given about $207 million in local and state tax incentives.
  • David Clarke Resigns As Milwaukee Co. Sheriff

    David Clarke Resigns As Milwaukee Co. Sheriff

    He rose to national prominence as a fierce critic of the Black Lives Matter movement with his charged conservative rhetoric. He was hit by allegations in May that he plagiarized content in his master's thesis on homeland security, which he denied.
    Raikkonen contract came as no surprise to Perez

    Raikkonen contract came as no surprise to Perez

    Lewis Hamilton has secured pole position for the Belgian Grand Prix , equalling Michael Schumacher's record of 68 career poles. Vettel, who had struggled through the build-up sessions, admitted: "I really needed that final lap".
    Howe points finger at officials after dramatic Sterling victor

    Howe points finger at officials after dramatic Sterling victor

    Aguero simmered on the team bus and delayed his departure when they pulled up outside the Vitality Stadium, making a point. And before, therefore, this end of the game insanely sweet for Manchester City and if frustrating for Bournemouth ...


Most liked

AAP wins #BawanaByPoll, big setback for BJP
Having lost two seats that went to polls in Goa, the Congress today alleged that the ruling BJP "indulged in corrupt practises". The advent of AAP on Delhi's political scene has totally altered the electoral equations in the city-state.

Amazon adds multiroom audio control to Echo devices
Alexa customers will be able to access Cortana's features, including booking meetings, accessing calendars and reading email. Google , of course, has Google Assistant built into the Google Home speaker as well as select Android phones.

Lights, camera, action! The Ball family's reality TV show premieres this fall
Ball managed to score a deal with Facebook back in June that would allow him to produce a reality show called Ball in the Family . LaVar Ball and his three basketball sons continue to be media darlings.

Toddlers among six killed as monsoon rains lash Indian city
The east Indian state of Bihar has been particularly hard hit, with more than 500 people killed this monsoon season. The resulting floods brought the city's transportation systems to a standstill.

Europe migrant crisis: Germany and Egypt agree deal to stem migrant flow
Mr Schulz, who doesn't have a position in Ms Merkel's administration, has said it's the government's job to avoid driving bans.

Gervonta Davis Scores KO On Mayweather-McGregor Card In Bizarre Fight
When Davis was announced as the victor , the crowd booed leaving Davis with a quizzical expression on his usually smiling face. In the seventh round, Davis' feet got tangled with Fonseca's leg and that allowed Fonseca to land a meaningful left hand.

Spencer Ware Reportedly Will Miss Time with Knee Injury; LCL, PCL Damaged
Ware was carted off the field after suffering a PCL injury in Friday's preseason game against the Seahawks. Ware will seek a second opinion, per Kissel, but the outlook doesn't look good.

Uber Posts Loss, Bookings Increase
While Uber still lost $645 million, that represents a 14 percent decrease over the $708 million lost in the first quarter. It bent to mounting pressure from drivers in June by adding the option for customers to tip within the app.

Hamilton: Spa Friday practice one of Mercedes' strongest in 2017
Asked if Mercedes had an advantage over Ferrari after Friday's running, he added: "I don't think so". Ferrari are putting their best efforts to retain their star driver for the next three seasons.

Police officers injured in attack at Buckingham Palace
Images posted online showed a heavy police presence outside the palace, with emergency vehicles packing out the road. Police responded Friday night to an area outside Buckingham Palace due to an alleged assault.

Whole Foods Market Will Slash Prices Monday as Amazon Acquisition Finalizes
Amazon customers will also be able to buy Whole Foods' brands via the Amazon website and through its grocery delivery services. Other foods that will be cheaper beginning next week: Bananas, eggs, ground beef, rotisserie chicken, butter and apples.

Russian ambassador to Sudan reportedly found dead in swimming pool
Russian ambassador to Sudan Migayas Shirinsky died in Khartoum , the Russian Foreign Ministry's information department told TASS. Before taking his post in Sudan , Shirinskiy served at the Russian embassies in Egypt, Yemen, Saudi Arabia and Rwanda.

Fallout 4 VR Will Be Launched Without Any DLCs
However, that's about to change thanks to Bethesda's efforts at bringing three of its top franchises to the new medium. If you're looking for more information on Fallout 4 VR, Skyrim VR , or Doom VFR , you can visit Bethesda's website .

Severe thunderstorm watch issued as strong storms move in
The greatest risk for isolated tornadoes will be across upstate NY and northern Pennsylvania into early Tuesday evening. A tornado watch means conditions are favorable for severe thunderstorms, including the possibility of tornadoes.

A timeline of events since Jayalalithaa's death — AIADMK merger
Following the merger now the path is paved for AIADMK to became a partner with NDA also after forming an alliance with BJP. August 11: CM Palaniswami said the appointment of Dinakaran as party's deputy general secretary was "not acceptable".