When Revenue Secretary Hasmukh Adhia admitted that the government expects the entire money in circulation in the form of currency notes of 500 and 1,000 which have been scrapped to come back to the banking system, it was clear that there would be no windfall gains for the government. Some experts had projected that a part of the demonetized currency notes of a value of 14.17 lakh crore would not return to the banking system. In its report, the State Bank of India had estimated that 2.5 lakh crore may not return to the system. It was argued that this amount could be spent on infrastructure development and pro-poor schemes. Already an estimated 14 lakh crores of banned currency has come back to banks.
There is a question mark whether black money hoarders have actually laundered their black money into white or counterfeit notes have found their way to banks? With few days left for the deadline to lapse, it appears that the banned currency deposits may swell past the 14.17 lakh crore that was actually in circulation as per RBI.
It is time for the government to come out with new schemes to show that gains of demonetisation negate the cost of the whole exercise that has caused some pain to the people with the ābearerā of the ānoteā who has been promised ārupeesā by the RBI, finding no place to go. Despite that, the masses are endearingly bearing the pain in the hope of āAchhe dinā promised by the Prime Minister Narendra Modi as faith in his leadership and commitment is still intact.