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Over Rs 3 lakh crore deposited in 2 crore new bank accounts post-demonetisation: report

The government’s study of financial data to understand and analyse the impact of demonetisation has thrown up some interesting figures. According to the data, the notes ban announcement on November 8 was followed by the
India TV Business Desk New Delhi January 09, 2017 12:57 IST
India TV Business Desk

The government’s study of financial data to understand and analyse the impact of demonetisation has thrown up some interesting figures. According to the data, the notes ban announcement on November 8 was followed by the creation of over two crore bank accounts and deposits over Rs 3 lakh crore made in the 40 days of demonetisation.

Between November 15 and December 25, 2016, 2.10 crore bank accounts were created and over Rs 3 lakh crore was deposited in them. Of the amount deposited, around Rs 50,000 crore was in cash deposits, and Rs 3 lakh crore was non-cash deposit (cheques, drafts, etc), Economic Times reported citing Financial Intelligence Unit's data sought by the Centre to analyse the impact of note ban, the ET report says.

The top officials associated with the demonetisation policy are of the view that the huge proportion of vanquished money brought back to the system is not a sign of failure but a testament to the policy’s success in formalising the economy, the daily reports.

It has been reported that over 90 per cent of the demonetised currency has already made its way back into the system, rendering the Centre’s assumptions of a windfall incorrect.

“The amount of money that has come back wouldn’t have come back even in the next five years” a senior official told ET.

He said after two years, only 20 crore bank accounts under Jan Dhan were opened, but post demonetisation, “with no extra effort, we have seen around three crore new bank accounts getting opened in a month.” 

The officials also said the government is convinced that a start has been made in creating a major behavioural change. Black money is now considered costly, another official said. 

More policies aimed at changing preference for gold and data-backed smart scrutiny of banks accounts that identify suspicious activities are being planned, officials said.