Editor In Chief
On Wednesday, Reserve Bank of India presented its annual report (2017-2018), although through this report various crucial information’s came out in front of the nation, but also through the report for the first time RBI told that after the demonetization happened on 8 November 2016, how many notes did they receive back? In the situation when RBI surprisingly took long in releasing the figures and along with the opposition whole nation becomes thirsty to know the results of demonetization, It is obvious then that the complete debate to become constant on this point.
It took RBI around two years in the process of counting notes. It has been revealed in the report that 99.3% of the restricted notes were returned which means Rs. 15.41 lakh crores that were in practice, from which only 10 thousand crores of rupees did not return. After the reports came opposition has termed the ban as a failure.
Although note ban has not happened for the first time in India, notes of 1000 and 10000 were discontinued in 1946, and in 1978, notes of 1000, 5000 and 10000 were discontinued for the same purpose that black money will be extinguished from the economy but Finance Ministry’s 2012 report said that these decisions did not achieve any major success.
In the current situation it can be said that when 99.3 percent of the notes came back, the black money in the economy was not in the form of notes. Then how did the present government make such a big mistake?
In fact, there is a need to understand money and currency differently as money is kept in the form of currency or note in an amount as much as it is necessary for financial transactions. The rest of the money is whether black or white it is placed in gold, diamond jewelry, real estate, factory industry etc. or kept in foreign banks. There are many other ways to hide money.
Clearly, the decision told to be a masterstroke on behalf of the government has not given the result for which the whole country became financially handicapped for a long. The existing government can learn from the previous governments. Even in Myanmar and Sri Lanka, this experiment was unsuccessful.
In the coming time, this decision will be analyzed more in-depth for the time being reviewed but apart from this, the other things mentioned in the report must not be overlooked. For instance, NPAs of banks are increasing steadily, which can rise above the present level of 11.5%, the US restrictions on Iran will make crude oil more expensive. There is a possibility of rupee becoming weaker than the dollar, the danger of increasing the trade deficit. Apart from that some good things which are comforting, the agriculture production will be better continuously for the third time. The estimated growth rate of GDP is 7.4 percent, which is better than 6.7 percent of the previous year.