99 per cent of banned notes are back in system: RBI

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Out of 632.6 crore pieces of Rs 1,000 currency notes in circulation, 8.9 crore haven't yet returned to banks.

After launching Rs 200 note for the first time in history, RBI also plans to issue new Rs 1000 currency notes which had discontinued past year during Prime Minister Modi's demonetization move.

However, RBI said that it pumped in 2380 crore notes totalling Rs 5.54 lakh crore in the two months post demonetization between November 9 to Decemeber 31.

According to the report, around 89 million old Rs 1000 notes were in circulation in March 2017, while in March 2016, around 6.3 billion Rs 1000 notes were in circulation.

Recently, RBI also announced new Rs 50 currency notes in fluorescent blue.

The previous sources regarding the introduction of the new Rs 1000 note have gone viral on the Internet.

"Buoyed by festival demand and a bumper kharif harvest, a renewed pick-up in currency in circulation was beginning to form in Q3 when demonetisation abruptly stifled it".

"With RBI disclosing the numbers of returned notes today [Wednesday] and the measure having been successfully implemented, the debate should be over", said Economic Affairs Secretary Subhash Garg.

The RBI said the introduction of new denomination and design is done keeping in mind factors like ease of transactions, replacement of soiled banknotes, inflation and the need to check counterfeiting.

"Till such time these notes are processed by the Reserve Bank for their numerical accuracy and authenticity, only an estimation of specified bank notes received back is possible", the central bank stated in the report. "That is 1%. Shame on RBI which "recommended" demonetisation", he said.

He said, "The Rs 2,000 note will continue to exist but the focus will be on the lower-denomination notes".

Finance Minister Arun Jaitley said on Wednesday that the confiscation of money was never the objective of the demonetisation exercise.

"99.9% of the notes back in the banking system".

Jaitley further said that India was predominantly a cash economy and that condition needed to be altered to give a blow to black money.