RBI and banned notes - Fusion - WeRindia

On November 8th, 2016, the Government of India had banned the use of ₹500 notes and ₹1,000 notes, which was a part of their initiative to clean up the economy of India and weed out black money.

The government told the holders of these currency notes that they were allowed to deposit them in banks, and they could also use them at certain notified utilities.

According to the Reserve Bank of India (RBI), there were 1,716.5 crore pieces of ₹500 notes and 6585.8 crore pieces of ₹1,000 notes in circulation at that time.

These notes added up to ₹15.44 lakh crore.

Recently, the RBI has revealed what is being done to these ₹500 notes and ₹1,000 notes. First, the notes are counted and processed for genuineness.

After that, they are shredded and compressed into bricks, which is done in shredding and briquetting systems in various RBI offices.

Then, the shredded notes are disposed of through a tendering process. In various RBI branches across India, there are at least 59 sophisticated CVPS (Currency Verification and Processing) machines in operation to process these demonetized notes.

The RBI said that they do not recycle such processed notes.

On August 30th of last year, the RBI released its annual report for 2016-2017.

In this report, they announced that ₹15.28 lakh crore had returned to the banking system. This makes up 99% of the demonetized ₹500 and ₹1,000 notes.

The remaining 1% of the demonetized notes, which only adds up to ₹16,050 crore, had not yet returned.

This report shows that the economy is swiftly recovering from this necessary disruption, and it will now be free of corruption and black money.

This will certainly ensure better times in the future, both for the Indian economy and for India as a whole.

Image credit: Image by Anand Kumar from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/it/illustrations/soldi-rupie-valuta-indiano-1703164/