What is the inference from Reserve Bank of India data on demonetisation?The Reserve Bank of India in its annual report disclosed that 99.3% of the Rs 500 and Rs 1000 currency notes withdrawn from circulation in November 2016 were returned to the banks. According to the RBI report, after verification and reconciliation, the total value of the Rs 500 and Rs,1000 as on November 8, 2016, the day before note ban came into effect, was Rs 15,417.93 lakh crore. The total value of the withdrawn notes returned from circulation was Rs 15,310.73 lakh crore.
After the demonetization, the RBI spent Rs 7,965 crore in 2016-17 on printing new Rs 500 and Rs 2,000 and other denomination notes. This is more than double the Rs 3,421 crore spent in the previous year by the RBI.
The Government has emphasized the demonetization as a step that would curb black money, corruption and check counterfeit currency. The RBI report said that "Compared to the previous year, there was an increase of 35 percent in counterfeit notes detected in the denomination of Rs 100, while there was a noticeable increase of 154.3% in counterfeit notes detected in the denomination of Rs 50. The counterfeit notes detected in the new Rs 500 and Rs 2,000 notes during 2017-18 were 9,892 and 17,929, against 199 and 638 respectively in the previous year.
The public was put through a lot of hardship and some lives were also lost while waiting in the ATM queues. What is the inference from this report?