Demonitization: Doubts of Double Counting!

Demonitization: Doubts of Double Counting!

RBI has officially said that a total of Rs 11.5 lakh crore has been deposited in banks in old notes since the govt. announced to scrap the high denomination Rs 500 and Rs 1,000 currency notes on 8th November.

State Bank of India (SBI) however differs with the numbers reported by the RBI and it has raised doubts of double counting of deposits in the banks. SBI cites a valid reason to ascertain the possibility of double counting.

By the time Modi announced the demonetization, about Rs. 15.5 lakh crore was in circulation. 'The so far reported amount, Rs 11.5 lakh crore, which amounts to around 75 per cent of the total, doesn't depict the exact deposits,' said a report of the Economic Research Department of SBI.

"RBI has not clearly stated whether the money in the currency chest is taken into estimates, as it includes interbank deposits. Also, both the post offices and co-operative banks have accounts with Scheduled Commercial Banks and it is not clear whether there is double counting there," the report said.

There is a possibility of double counting of upto 15 per cent in deposits through all the modes, the SBI report said.

People still have time until 30th December to deposit their old notes.