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LATEST NEWS UPDATES | 97% banned notes said to be deposited in banks in blow to Modi's black money fight -Siddhartha Singh

97% banned notes said to be deposited in banks in blow to Modi's black money fight -Siddhartha Singh

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published Published on Jan 5, 2017   modified Modified on Jan 5, 2017
-Livemint.com

Banks have received Rs14.97 trillion ($220 billion) as of 30 December, the deadline for handing in the banned notes, said a person familiar with the matter

New Delhi:
Indians have deposited nearly all the currency bills outlawed at the end of the deadline last year, according to people with knowledge of the matter, dealing a blow to Prime Minister Narendra Modi’s drive to unearth unaccounted wealth and fight corruption.

Banks have received Rs14.97 trillion ($220 billion) as of 30 December, the deadline for handing in the old bank notes, the people said, asking not to be identified citing rules for speaking with the media. The government had initially estimated about Rs5 trillion of the Rs15.4 trillion rendered worthless by the sudden move on 9 November to remain undeclared as it may have escaped the tax net illegally, known locally as black money.

A full validation of the bank notes is a set back for Modi who had been relying on this move to burnish his administration’s corruption fighting credentials and boost its popularity ahead of key state elections. The anti-corruption measure has dented economic growth and forced millions into lengthy bank queues, although it remains broadly popular.

Banks have disbursed about Rs8 trillion in new currency bills, the people said. The figures of bank notes deposited are provisional and may change, they added. Finance Ministry’s spokesman D.S. Malik didn’t respond to a call and a message sent to his mobile phone.

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Livemint.com, 4 January, 2017, http://www.livemint.com/Industry/RlRLIaViu44DYPKASuX76K/Banks-said-to-get-97-of-banned-notes-in-setback-to-Modis-b.html


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