Lok Sabha Question No. 312 (UNSTARRED), answered on 2017-02-03
Subject: Deposits in Banks after Demonetization
Ministry: FINANCE
Asked by: BALKA SUMAN, G. HARI, HARISH CHANDRA MEENA, AJAY (TENI) MISRA, CH. MALLA REDDY, RAGHAV LAKHANPAL, FAIZAL P.P. MOHAMMED, K. C. VENUGOPAL, DEEPENDER SINGH HOODA, PARAYAMPARANBIL KUTTAPPAN BIJU, (SMT.) RATNA DE(NAG), PR. SENTHILNATHAN, NAGARAJAN P., SRINIVAS KESINENI, ARVIND GANPAT SAWANT, KRUPAL BALAJI TUMANE, SUNIL KUMAR SINGH, JAY PRAKASH NARAYAN YADAV, Adhikari Dibyendu

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 312

TO BE ANSWERED ON FEBRUARY 3, 2017 / MAGHA 14, 1938 (SAKA)

## 'DEPOSITS IN BANKS AFTER DEMONETIZATION'

## 312.   SHRI SUMAN BALKA:

SHRI P. NAGARAJAN:

SHRI DEEPENDER SINGH HOODA:

SHRI G. HARI:

SHRI K.C. VENUGOPAL:

SHRI JAI PRAKASH NARAYAN YADAV:

SHRI HARISH MEENA:

SHRI KRUPAL BALAJI TUMANE:

SHRI AJAY MISRA TENI:

SHRI CH. MALLA REDDY:

SHRI SUNIL KUMAR SINGH:

SHRI KESINENI NANI:

SHRI ARVIND SAWANT:

DR. RATNA DE (NAG):

SHRI P.K. BIJU:

SHRI DIBYENDU ADHIKARI:

SHRI PR. SENTHIL NATHAN:

SHRI RAGHAV LAKHANPAL:

SHRI MOHAMMED FAIZAL:

Will the Minister of FINANCE be pleased to state:

- (a)  the  total  value  of  the  demonetized  currency  notes  of  Rs.  500  and  Rs.  1000  in circulation on the day of demonetization, denomination-wise;
- (b) the total value of old Rs. 500 and Rs. 1000 notes deposited/received in public private sector  banks/post offices;
- (c)  whether the entire amount of such notes in circulation has been received back by the  RBI/Government, if so, the details thereof and if not, the reasons therefor;
- (d) the details of amount deposited in public and private sector banks after demonetization including in Jan Dhan accounts, bank and State/UT-wise;

(e)  whether  the  RBI/banks  have  received  a  good  quantity  of  fake  notes  of  the  said denominations during demonetization period and achieved desired success in doing a way the fake currency notes and if so, the details thereof;

(f)  the  details  of  the  ratio  at  which  the  Rs.  500  and  Rs.  2000  notes  were  distributed between public and private sector banks allocated in rural and urban parts of the country; and

(g) whether the RBI has issued any guidelines for demonetization, if so, the details thereof and the reasons for issuing guidelines frequently by the RBI during demonetization?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI ARJUN RAM MEGHWAL)

- (a) : The total value of the demonetized currency notes of Rs. 500 and Rs. 1000 in circulation on the day of demonetization, denomination-wise is as under:

| Rs.500             | Rs. 1000          |
|--------------------|-------------------|
| Rs. 8,58,253 crore | Rs.6,85,782 crore |

(b), (c) and (d): Specified Bank Notes (SBNs) of ₹ 500 and ₹ 1000 returned to RBI and Currency Chests amounted to ₹ 12.44 lakh crore as of December 10, 2016.

The SBNs were deposited at more than 1 lakh branches of banks and were subsequently transferred to more than 4000 currency chests and 19 Issue offices of RBI. Verification of returned notes for counterfeit notes and accounting reconciliation is in process.

(e): The provisional data regarding FICN detected by RBI and detection reported by banks so far in exchange / deposits of Specified Bank Notes is as follows:

|             | Pieces   | Pieces   | Pieces       | Notional Value   | Notional Value   | Notional Value   |
|-------------|----------|----------|--------------|------------------|------------------|------------------|
| Particulars | 500      | 1,000    | Total Pieces | 500              | 1000             | Total Value      |
| Grand Total | 102,037  | 144,337  | 246,374      | 51,018,500.00    | 144,337,000.00   | 195,355,500.00   |

(f): New  notes  were  equitably  distributed  across  the  country  to  ensure  availability  of currency notes to public. Banks with Currency Chests were advised to ensure adequate cash supply to RRBs, DCCBs and rural branches of commercial banks for facilitating activities relating to Rabi cropping season. Further the Currency Chest maintaining banks were advised to involve District Co-ordinates functioning under the aegis of the State level Banker's  Committee  in  planning/distribution  of  banknotes  so  as  to  ensure  adequate allocation  of  cash  to  DCCBs,  rural  branches  and  post  offices.  In  order  to  ensure availability  of  notes  to  rural  areas  of  the  country  RBI  issued  necessary  instruction  to chests  to  ensure  40%  of  aggregate  issuance  of  fresh  notes  to  rural  branches  of commercial banks, RRBs, DCCBs and ATM networks.

(g): The changes to instructions and relaxations made from time to time by RBI were well considered responses based on feedback from the ground and to address some of the inconvenience to public, while ensuring that the provisions are not misused.

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