Purpose of demonetisation solved as entire money came back to banking system, claims VP Venkaiah Naidu

In his address at an international conclave on human rights here, he also said the world must come together and put in place arrangements for handing over fugitives.

As much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system. (Image: PTI)

Vice President M Venkaiah Naidu Monday said the 'entire money' has come back to the banking system through demonetisation, and now it was up to the RBI and the Income-Tax department to identify how much of that is black money and how much is white. In his address at an international conclave on human rights here, he also said the world must come together and put in place arrangements for handing over fugitives. As much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system, the RBI had said late August, indicating that just a miniscule percentage of demonetised currency was left out of the system after the note-ban aimed at curbing black money and corruption. "Demonetisation targeted black money kept by people in the country. Entire money has come back to the banking system. Criticism are bound to be there. But, I feel it is the correct thing...that is what I think was the purpose (of the exercise)," Naidu said. "People who had stashed away money in bedrooms, bathrooms, fridges returned it, with address...And, now it is duty of the Reserve Bank of India and the I-T department to identify whether that money is black or white, how much is accounted or not accounted," he added. Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation as on November 8, 2016, when the note ban was announced, notes worth Rs 15.31 lakh crore have been returned. This meant just Rs 10,720 crore of the junked currency did not return to the banking system. He also said, "Entire world must move towards having accountability of money, it is causing problems... Entire world must come together and have arrangements for handing over of fugitives who run away, countries must have exchange of treaty, and the UN should work on it, so there is exchange of information." After the note ban, old junked notes, called specified bank notes (SBNs), were allowed to be deposited in banks with unusual deposits coming under income-tax scrutiny.