Banks have informed that over 97% of all the demonetised Rs 500 and Rs 1000 notes have been returned. The notes were deemed as illegal tenders on the 8th of November and citizens had 50 days to return the notes that were rendered useless. Banks are said to have recovered about Rs 14.97 trillion rupees. This is a very high number as Prime Minister Narendra Modi expected that ill gotten un taxed black money would not enter the system and would deal a death blow to all the illegal activities and businesses carried out with this money.
The BJP led government had expected about Rs 5 trillion to stay out of the system, but that estimate has gone for a toss as over 97% of the notes in circulation have come back into the system. Banks have successfully injected over Rs 8 trillion into the economy in notes of the new denomination. The final amount of money collected and released into the system shall be confirmed by the Reserve Bank of India (RBI).
PM Modi was trying to use this demonetization move to prove his credentials as that of a reformer and believed that a large amount of black money would not return to the system. This would hurt all the illegal businesses that did not get their income money taxed or earned an income from illegal sources. However, with 97% of all the currency in circulation coming back to the Government, critics are now bound to question the achievements of the move.