7th December, 2016
Following demonetisation, banks in India have witnessed total deposits of Rs.11 lakh crore which is 80% of the total banned currency. An amount Rs. 8.45 lakh crore was deposited between November 10 to 27 in various banks in India. The State Bank of India witnessed deposits of Rs. 22,000 crore between November 28 to 30, 2016. According to the Reserve Bank of India, the total valuation of old Rs.500 and Rs.1000 notes that had been in circulation in the market till March 2016 was worth Rs. 14.18 lakh crore which accounts for nearly 86% of the total currencies that exist in the banking system. The whole amount comprised 15,707 million notes of Rs.500 denomination. So far, all deposits comprise of nearly 80% of the total amount which is Rs. 14.18 lakh crore of banned currencies.
Will Demonetisation be a Success in India?
The Government of India announces that one of the main purposes of demonetisation will be to curb the usage of black money in India. Now considering the inflow of 80% banned currency to banks, there lies the question as to how successful demonetisation will be in terms of curbing black money. Besides, this new financial move has created a lot of trouble for those who live in the rural parts of India. They are facing major problems when it comes to withdraw money and carry out cashless transactions. Hence, the Supreme Court of India recently requested the Centre to take necessary steps to simplify the process of cash withdrawal and reduce inconvenience caused to these people who mainly rely on cooperative banks. Many people are now questioning the implementation of the demonetisation drive in India. Despite the gaps being pointed out by common people and critics, it can be expected that this historical move of changing national currency would help in the long run to curb corruption.