Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on 8 November, 2016, when the note ban was announced, notes worth Rs 15.31 lakh crore have been returned.
"Counterfeit notes in denominations of Rs 500 and Rs 1,000 detected in SBNs (specified banknotes) decreased by 59.7 and 59.6 per cent respectively, as the same comprised only the residual part of SBN deposits processed during 2017-18", the report said. The government predicted that Rs 3 lakh crore in currency would not return to the banks. "The total value of SBNs returned from circulation is Rs 15,31,073 lakh crore", the central bank said.
India's economy is now showing signs of recovery after the disruptions of demonetisation, the RBI report said. "If that was the objective then yes, it has failed because Rs 13,000 crore is the amount, which is possibly held outside the country in nations such as Nepal, Bhutan, Bangladesh, Burma who simply did not have the facility to exchange the currency", the news channel reported Sen as saying.
When Indian Prime Minister Narendra Modi announced the replacement of 80 per cent of India's cash in 2016, he sparked a currency crisis that led to huge job losses, stalled growth and hit India's vast informal sector.
"That alone was a loss of Rs 2.25 lakh crore a year", he said.
Quoting RBI report, the Trinamool Congress supremo said 99.3 per cent of the demonetised money has come back to the banking system.
Making a sharp attack on the Modi government on demonetisation, former Finance Minister P. Chidambaram on Wednesday said the country paid a "huge price" for cancelling what turned out "a small sum" of Rs 13,000 crore.
Thousands of SME units were shut down, lakhs of jobs were destroyed and the Indian economy lost 1.5% of GDP in terms of growth, Chidambaram said in another tweet. "I think demonetisation achieved its objectives quite substantially", he said.
Asked about reports of fake notes presented to the banks post-demonetisation, Garg said a year ago in a RBI report it was said, that all the notes were verified and the amount of fake notes was "minuscule and ignorable".
"Around Rs 16,000 crore of demonetised notes were not received".
The overall notes in circulation added up to Rs 18.03 lakh crore as on March 2018, displaying a growth of 9.9 per cent over March 2016. The number of counterfeit notes of the redesigned Rs 500 and the new Rs 2,000 increased almost 50 times and 28 times, respectively, in the last fiscal compared to the previous financial year. "Thus, there is a 5.8 per cent, or Rs 1 lakh crore, shift in favour of small denomination currency notes", said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.