Demonetisation Cost

The RBI has declined to reveal the cost incurred on scrappingbanned currency notes worth Rs 15,31,073 crore which returned to banks following demonetisation, an RTI activist said, citing a response from the central bank.

Demonetisation was not a mistake but a deliberate attack on citizens to help big businesses, Rahul Gandhi said on Thursday, stepping up his offensive against Prime Minister Narendra Modi and the government a day after the Reserve Bank of India (RBI) revealed that most of the banned cash had returned to the system.

Over 99 per cent of Rs 500 and Rs 1,000 notes banned by Prime Minister Narendra Modi in the November 2016 demonetisation have returned to the banking system, the Reserve Bank of India said today after completing what it calls the "humungous task" of counting the banned cash. The central bank's annual report says only a fraction of the currency was ...

After the twin shocks of a cash ban in 2016 and the chaotic introduction of a consumption tax last year, India's economic recovery is gaining momentum. Businesses are taking advantage of the solid demand to raise prices, lifting profits, but also fanning inflation at a time of higher oil prices and a currency slump.

"Excessive dependence on cash has its own cost," said the Finance Minister.

RBI former governor Raghuram Rajan had cautioned the government against cost of demonetisation and suggested that there were better alternatives to achieve the main goals of notes ban.

Taking a potshot at the government over demonetisation, former Finance Minister P. Chidambaram on Friday said another Rs 50,000 crore should be added to the cost of the note ban exercise that was undertaken last year.

The RBI need not print the entire amount of extinguished currency because first already there was excess cash floating in the system before note-ban and secondly the pace of digitalisation has gone up leading less cash demand, SBI Research said in a report today.

The approximate cost of printing each note of new Rs 500 is in the range of Rs 2.87 to Rs 3.09, and Rs 3.54 to Rs 3.77 for Rs 2,000, Minister of State for Finance Arjun Ram Meghwal said.

SpiceJet said it could remain profitable despite a softening of demand due to demonetisation and rising fuel prices.

India's central bank signaled that its interest-rate easing cycle is coming to an end after unexpectedly leaving borrowing costs unchanged for a second straight meeting while citing sticky inflation.

Mr Patel met the panel to answer questions about the November 8 abolition of Rs 500 and Rs 1,000 notes, or 86 per cent of the currency then in circulation.

Belying speculations that demonetisation and agitations by several communities for reservation including by Marathas will cost BJP in polls, the ruling party led by Devendra Fadnavis has emerged a winner after the fourth and the final phase of the Municipal Council and Nagar Panchayat elections in Nagpur and Gondia district on January 8, 2017.

SBI has reduced marginal cost of funds based lending rate (MCLR) by 0.9 per cent from 8.90 per cent to 8 per cent for one-year tenure, the bank said in a statement.

While the central government is making an all-out effort to push for the culture of digital transactions, it is just the opposite case in Madhya Pradesh, where online booking of tickets for air-conditioned private buses costs 13 per cent more than buying them at counters.

The RBI has declined to reveal the cost incurred on scrappingbanned currency notes worth Rs 15,31,073 crore which returned to banks following demonetisation, an RTI activist said, citing a response from the central bank.

Demonetisation was not a mistake but a deliberate attack on citizens to help big businesses, Rahul Gandhi said on Thursday, stepping up his offensive against Prime Minister Narendra Modi and the government a day after the Reserve Bank of India (RBI) revealed that most of the banned cash had returned to the system.

Over 99 per cent of Rs 500 and Rs 1,000 notes banned by Prime Minister Narendra Modi in the November 2016 demonetisation have returned to the banking system, the Reserve Bank of India said today after completing what it calls the "humungous task" of counting the banned cash. The central bank's annual report says only a fraction of the currency was ...

After the twin shocks of a cash ban in 2016 and the chaotic introduction of a consumption tax last year, India's economic recovery is gaining momentum. Businesses are taking advantage of the solid demand to raise prices, lifting profits, but also fanning inflation at a time of higher oil prices and a currency slump.

"Excessive dependence on cash has its own cost," said the Finance Minister.

RBI former governor Raghuram Rajan had cautioned the government against cost of demonetisation and suggested that there were better alternatives to achieve the main goals of notes ban.

Taking a potshot at the government over demonetisation, former Finance Minister P. Chidambaram on Friday said another Rs 50,000 crore should be added to the cost of the note ban exercise that was undertaken last year.

The RBI need not print the entire amount of extinguished currency because first already there was excess cash floating in the system before note-ban and secondly the pace of digitalisation has gone up leading less cash demand, SBI Research said in a report today.

The approximate cost of printing each note of new Rs 500 is in the range of Rs 2.87 to Rs 3.09, and Rs 3.54 to Rs 3.77 for Rs 2,000, Minister of State for Finance Arjun Ram Meghwal said.

SpiceJet said it could remain profitable despite a softening of demand due to demonetisation and rising fuel prices.

India's central bank signaled that its interest-rate easing cycle is coming to an end after unexpectedly leaving borrowing costs unchanged for a second straight meeting while citing sticky inflation.

Mr Patel met the panel to answer questions about the November 8 abolition of Rs 500 and Rs 1,000 notes, or 86 per cent of the currency then in circulation.

Belying speculations that demonetisation and agitations by several communities for reservation including by Marathas will cost BJP in polls, the ruling party led by Devendra Fadnavis has emerged a winner after the fourth and the final phase of the Municipal Council and Nagar Panchayat elections in Nagpur and Gondia district on January 8, 2017.

SBI has reduced marginal cost of funds based lending rate (MCLR) by 0.9 per cent from 8.90 per cent to 8 per cent for one-year tenure, the bank said in a statement.

While the central government is making an all-out effort to push for the culture of digital transactions, it is just the opposite case in Madhya Pradesh, where online booking of tickets for air-conditioned private buses costs 13 per cent more than buying them at counters.