The suspense is over now.
In the months following the November 2016 demonetisation, Indians deposited over 99% of banned currency notes in various banks, according to the Reserve Bank of India’s (RBI) annual report released today (Aug. 29).
On Nov. 08, 2016, when prime minister Narendra Modi declared the Rs500 and Rs1,000 invalid from the next day, these two notes accounted for Rs15.44 lakh crore circulating in the Indian economy, or 86% of the total by value. So according to the RBI report, Rs15.31 lakh crore returned to the banking regulator.
This is clearly far higher than the up to Rs10 lakh crore the government expected.
The withdrawal of these notes had sparked an acute shortage of cash in India and had a deleterious effect on economic growth. The bad hangover sustained for months as businesses were hit and over a million people lost their jobs.