Thursday, 8 December 2016

PM Modi should explain the Rs. 1.72 lakh crores hole in his demonetization drive



Reserve Bank of India states that Rs. 11.5 lakh crores has been deposited in bank accounts during the first month of the demonetization drive. However, SBI states that the figure is inflated by 15%. So who is right? 

Both of them actually. RBI mentions the amount of currency received by them from various banks. This includes the notes exchanged outside the system by unscrupulous branch managers. Banks only show the amounts entered as deposits within the system. Hence while the RBI reports a figure of 11.5 lakh crores, banks report a figure of 9.78 lakh crores. This leaves a Rs. 1.72 lakh crores gap in Modi’s drive. 

Time and again various statistics are pointing to the failure of Modi’s much vaunted demonetization drive. However, the PM has chosen to completely ignore hard facts and figures and simply reiterates his rhetoric and urges the youth to use highly vulnerable mobile banking systems. The recent raids by ED were just a drop in the ocean and a publicity stunt. 

Actual black money marketers have gamed the system and in a matter of just a month made off with 1.72 lakh crores while the common man remains stranded for even Rs. 2,000.

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