PM Modi RED-FACED..RBI says almost no black money, fakes notes

New Delhi: In a major embarrassment to PM Narendra Modi , the RBI data revelas that  Rs 15.28 lakh crore, or 99 per cent of the total Rs 15.44 lakh crore banned notes  came back into the system after demonetisation. This essentially means that only Rs 16,000 crore can be dubbed as black money, contrary to Rs 3 lakh crore estimated by the Modi government. The central government had touted note ban as a mojor tool to unearth black money and had estimated the black money over Rs 3 lakh crore.   

In its annual report, The RBI has said that only 1.4% of the total Rs 1000 notes have not come back into the system.  That is, only 8.90 crore Rs 1000 notes worth Rs 8,900 crore have not come back into system.

The report added that RBI incurred about  Rs 7,965 crore on printing of currency in the financial year 2016-17 which is almost double that of Rs 3,421 crore spent on printing in 2015-16. The rise in printing cost was because of printing of new currency notes after note ban.

After note ban, the overall currency in circulation in the system has come down by 20.2 per cent, the RBI said.  To meet cash shortage after note ban, the RBI had pumped in 2380 crore notes in circulation worth Rs 5,54000 crore during November 9 and December 31, 2016.

The RBI said that 7.62 lakh pieces of fake currency notes were detected in 2016-17 as against 6.32 lakh in 2015-16.

RBI said there were as many 588.2 crore of Rs 500 notes, both old and new in circulation as of March 31, 2017. A year ago, there were 1,570.7 crore Rs 500 notes in circulation.

Commenting on the RBI data, Left leader Sitaram Yechury said that Govt's cliam on black money has fallen flat now. “Lives & livelihoods lost, the economy got a shock and workers lost their jobs. India can never forgive Modi govt for this anti-national act,” tweeted Yechury