Demonetisation RBI's own figures indicate return of 15 lakh crore of banned notes.

Despite the Reserve Bank of India dismissing reports that suggested 97 per cent of the demonetised currency had returned to the bank's coffers by December 30, its own weekly figures on "currency in circulation" indicate that this number is correct. 

These figures, in fact, suggest that only Rs 54,000 crore of the notes banned on November 8 last year failed to make it back in chartered accountant firms in mumbai 

More worryingly, this figure has been arrived at on the assumption that no new notes were issued after December 19 -- a near impossibility. This could well open up the intriguing possibility that more banned notes may have returned than were said to be in circulation. 

December 19 was the last time the RBI gave any information on how much of the demonetised currency was back. Even the tally on new notes circulated are not available. 

On Friday (January 13), in its weekly  .. 

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The countries in three continents : After Modi's india, Demonetisation is spreading around the world

Six weeks ago, when prime minister Narendra Modi announced his government’s decision to demonetise Rs500 and Rs1,000 notes, it wasn’t just Indians who were taken aback.
World leaders, economists, and international organisations watched the bold experiment with a mix of wonder and worry. Would it work as a means to crack down on unaccounted cash and counterfeit currency in foreign companies subsidiary? So far, Modi’s move has left millions scrambling for cash, hitting consumption and thereby threatening GDP growth in India.
Nonetheless, it now appears Modi’s move was just the first of a handful of such year-end demonetisation exercises around the world

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Jan Dhan account withdrawals capped at Rs 10,000 a month

The central bank said the Rs 10,000-cap may be relaxed within current applicable limits after ascertaining the genuineness of such withdrawals.

The Reserve Bank of India today decided to fix a limit of Rs 10,000 on withdrawals from Jan Dhan accounts. Those with non-KYC compliant accounts under the scheme can only draw Rs 5000 per month.

In a notification issued today, the central bank, however, said the Rs 10,000-cap may be relaxed within current applicable limits after ascertaining the genuineness of such withdrawals.

Non-KYC (Know Your Customer) compliant Jan Dhan account holders are now allowed to withdraw Rs 5,000 a month with an overall ceiling of Rs 10,000.

DEPOSITS RISE IN JAN DHAN SINCE NOV 8

Since the demonetisation drive began on November 8, the Jan Dhan accounts have seen their aggregate deposits rise. On November 16 - the eighth day of the drive - Parliament was told the deposits increased to Rs 64,252.15 crore.

"As on November 16, 25.58 crore accounts with aggregate deposits of Rs 64,252.15 crore have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) across the country," Minister of State for Finance Santosh Kumar Gangwar told the Lok Sabha in a written reply.

Uttar Pradesh leads among the states with 3.79 crore account holders and deposits of Rs 10,670.62 crore, followed by West Bengal with 2.44 accounts and deposits of Rs 7,826.44 crore.

Rajasthan follows at third place with 1.89 crore accounts and deposits of Rs 5,345.57 crore.

The minister said that out of 25.58 crore accounts, 5.98 crore, or just over 23 per cent, are zero balance accounts.

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Ruchi Anand & Associates are top chartered accountants in New Delhi.

Jewellers shut shops for 5th day after Income Tax survey

Gold and jewellery establishments in the national capital remained closed for the 5th day today after the Income Tax Department conducted surveys following reports of alleged profiteering and tax evasion by traders and other operators in reported conversion of demonetised notes.

The survey operations were carried out on November 10 in at least four locations in Delhi-NCR region, including Dariba Kalan, Chandni Chowk and Karol Bagh.

Most jewellery houses have been closed since November 11 in the national capital.

According to the sources, the officials of Directorate General of Central Excise Intelligence (DGCEI), an arm under the Finance Ministry, has sent notices to these jewellers seeking details of the gold sales. 

Income Tax department is preparing for swoop on dubious depositors post Dec 30

 Come 2017, and the Income Tax department is preparing to serve notices on all those now depositing money in banks that is disproportionate to their known sources of income.

Informed sources said the department will start serving the notices just after December 30 -- the deadline set by the central government to deposit and exchange the demonetised Rs 500 and 1,000 notes.

These high-value notes ceased to be legal tender from November 8 midnight, only a few hours after Prime Minister Narendra Modi made a dramatic announcement about their spiking.

The Income Tax department started preparing the notices from November 10 -- when banks opened across the country after a day's closure following the demonetisation announcement.

The notices will go to those who have deposited or received cash in their accounts more than double their income, a highly placed Finance Ministry source told IANS, adding that the department had deputed special teams to track such account holders across India.

The concerned staff is reportedly working till late into the night every day, using extra manpower. People have been hired for the job at Rs 1,000 a day, the sources said.

Where it suspects fishy deposits, the Income Tax department will also monitor the last six months of inflow and outflow in these accounts.

The government fears that many people are putting their undeclared income in the Pradhan Mantri Jan-Dhan Yojana bank accounts of their employees and touts.

These accounts were opened with zero balance -- for the poor.

Separate teams have been told to track the source of income of suspected bank account holders, the sources said.

Also being tracked -- using an array of secret information -- are cash dealings and property purchases by suspicious account holders.

The transactions under the tax lens include cash deposits of Rs 2.5 lakh or more in a savings bank account and sale or purchase of immovable property valued at Rs 30 lakh or more.

"Those who have exchanging demonetised currencies on a regular basis may face Income Tax heat," an official said.

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Rs. 2,000 Notes In ATMs From Tomorrow, Says Government: 10 Latest Developments

1. 
   
2. PM Modi said at a meeting this evening of ruling party lawmakers that the country is with the government on demonetisation and there is no need to be defensive about the move in parliament, where the winter session starts on Wednesday.
3. No parking fees will be charged at airports for a week to ease the clamour for cash. National highways will also remain toll free at least till Friday.
4. Economic Affairs Secretary Shaktikanta Das said the supply of cash will be increased to post offices and a special team is working on recalibrating ATMs so they can dispense new Rs. 2,000 notes. New Rs. 500 notes were launched on Sunday.
5. The government has raised the daily limit of withdrawal from ATMs from Rs. 2,000 to Rs. 2,500 and exchange limit at banks from Rs. 4,000 to Rs. 4,500. Banks have been asked to raise the weekly withdrawal limit to Rs. 24,000 and scrap the daily cap.
6. New micro cash machines will be installed across the country, said Mr Das. The government would also raise the cash withdrawal limit of at least three-month old current accounts to Rs. 50,000 per week.  
7. PM Modi held a meeting with top officers after midnight on Sunday to review the demonetization, a move to bring billions in black or untaxed money into the mainstream economy and check terror funding.
8. "By turning 500, 1000 notes into worthless paper, I have removed economic disparity. I am trying my best to do whatever I can to lessen your difficulties," PM Modi told a large gathering at Ghazipur in Uttar Pradesh today, adding that he was only asking for 50 days whereas the Congress "turned the country into jail for 19 months".
9. In a series of public meetings on Sunday, he had said the nation had elected him to fight corruption and he was ready to do even though he faced a threat to his life.  "I know the forces up against me, they may not let me live... they may ruin me because their loot of 70 years is in trouble, but I am prepared," he said in an emotional speech in Goa.
10. Banks have received 3 trillion rupees ($44.4 billion) in deposits in the first four days since the currency ban, the Finance Ministry said in a statement late on Sunday.
11. Since last week, long queues at banks and ATMs have become routine for millions rushing to replace banned notes - the deadline is December 30 - or withdraw valid currency. The Reserve Bank of India has urged people to not withdraw cash repeatedly and hoard it.