First Casualty of Demon(etization) is MODI himself

As reported in various news papers on 11th August’17(including Times of India) the Reserve Bank of India is going to give a dividend of Rs.30000 crores  to the central government this year (FY 16-17) compared to about Rs.66000 crores in each of  the two previous years (14-15and 15-16).

From Reserve bank sources, it was clear that a huge amount of expenses had been incurred in printing new notes post Demon and all sorts of expenses in providing liquidity management interests to banks, the costs of re-calibration of ATMs, transportation, extra time work costs etc, incurred by RBI as well as amount reimbursed to Banks.


Even after more than 7 months since the DEMON effect, the government has utterly failed to provide even the slightest inkling into the black money recoveries in this whole exercise, thereby clearly indicating that the whole DEMON exercise utterly failed. And now this loss of dividend from RBI. In fact the government has made a budgetary provision of Rs.75000 crores for dividend from RBI. This short fall of about Rs. 45000 crores is likely to increase the Fiscal Deficit this year by 0.2 to 03.%

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