Rs 9.9 lakh crore deposited in banks since note ban

With three and a half weeks to go before the deadline to deposit old Rs 500 and Rs 1000 notes, Rs 9.9 lakh crore have already been deposited in banks until Saturday.

Rs 9.9 lakh crore deposited in banks since note ban

With three and a half weeks to go before the deadline to deposit old Rs 500 and Rs 1000 notes, Rs 9.9 lakh crore have already been deposited in banks until Saturday.

According to a report, this challenges the Centre's estimate that demonetisation might flush out about Rs 3 lakh crore in black money that may never come back.

The amount of money deposited till now is 70.4% of the Rs 14 lakh crore that was decommissioned by Prime Minister Narendra Modi on November 8, when he demonetised Rs 500 and Rs 1,000 notes in a bid to curb black money and cut off terror funding.



The government expected at least 10% of the Rs 14.6 lakh crore removed from the economy on November 8 to disappear for good – which would have reduced the RBI’s liability.

But the large amount deposited so far indicates that black money hoarders may have found ways to convert their cash into white money.


Sources feel the endless stream of deposits illustrate that those with illegal hordes have been able to find ways to convert "black" into deposits.

It is said that a substantial amount of black money will still be flushed out and this, coupled with what is expected to be realised by higher tax and penalty on undeclared cash, will help the Centre justify demonetisation.


A massive number of deposits of Rs 49,000 have been made into Jan Dhan accounts. This is suspicious because the threshold to avoid furnishing PAN number for deposits is Rs 50,000. Thus, Prime Minister Narendra Modi’s warning about black money hoarders depositing money into Jan Dhan accounts to escape the arm of the law seems to carry weight.

There are also instances where employers, including educational institutions and hospitals, put money into accounts of employees and have taken post-dated cheques as security.