RBI providing annual reports, politicians stick to lay blames on ruling government who defend with growth- demonetization

November 8, 2016, proved to be thunder striking day  for  Indian people as PM Modi announced decimating to main currency notes, Rs.500 and Rs.1000, a step was taken in order to restraint black money and corruption. While addressing the nation with the announcement he also said “there is no need for panic. Your money will remain yours. You need not worry at this point.”

Main claim of government was inflation rates have been concern for the Indian government but black money, corruption at various level.

To give permanent hault to terror activities in India.

Abolish fake currency.

Demonetizing India.

Limiting the use of money power in elections. But what now after almost the year.

While the jury is still out on the costs and benefits of demonetization. For RBI (reserve bank of India) at least the ban was the key reason for lower profits. In its annual report, Central Bank (RBI) said after demonetization close to 99 percent currency was back in the banks leaving out only Rs 16050 in black cash that had been weeded out. RBI income for the year ending June 30 fell 23.56% to Rs. 61,818 crore. One reason you was it foreign income fell 35.3% because of appreciation of the rupee and the lower yield on foreign currency assets. Secondly, net income from domestic source fell 17.11%  says the news sources.

The opposition as RBI announces the report the opposition started word battle at PM Modi and its policy advisors. P Chidambaram says “shame on RBI. Hetweeted

RBI 'gained' Rs 16000 crore, but 'lost' Rs 21000 crore in printing new notes! The economists deserve Nobel Prize.

— P. Chidambaram (@PChidambaram_IN) August 30, 2017

General Secretary Sitaram Yechury  another politician who in a series  tweeted attacking PM Modi government and all the demonetization act anti-national.

#DemonetisationScam Questions that Government must answer after the disaster has unfolded. Lives and Jobs lost. No Gain. pic.twitter.com/cCHepQkr49

— Sitaram Yechury (@SitaramYechury) August 31, 2017

Congress Vice president Rahul Gandhi it was a colossal failure which cost innocent lives and ruined the economy. He said whether Pm own up it He added Demonetization drama is not against corruption or black money. The decision of note bandi is an assault against 99 percent honest citizen in the country. It’s an attack against cash economy and poor people. Another Congress man Randeep Surejwal said corrupt and wind fall again. He placing blame on PM said’ Pm should apologies to the nation’.

Mamata Banerjee CM of West Bengal said “was the system deliberately set up by the government of India to facilitate dealers of black money to convert black money into white in lakh of crores? What is the hidden agenda? She wrote.

Though Jaitley said it helped in bringing the economy into a formal one. Demonetization helped in widening tax base which in turn led to increasing in the direct and indirect tax collection.

The statement from N.R. Bhanumurthy an economist at National Institute of Public Finance and Policy Who Delhi based work under the finance ministry; it was heavily loaded with politics and less with economics.

But data on Thursday showing the economy had grown almost 5.7 percent in three month to end June was also marked as slowest in 13 quarter seeing effect on demonetization. Arun Jaitley said object of note ban was never to confiscate cash next step will be to cleanse political funding. He hit hard at critics who have said that there were no gains from demonetization said Some people confusing note ban with amount of many which has come back, as per sources. Anyway Jaitley claim that income tax returns rose over 25pct.