99.3% demonetised notes returned to banks: RBI

The Reserve Bank of India (RBI) in its annual report for the year 2017-18 stated that 99.3 per cent of the demonetised Rs 500 and Rs 1,000 notes have returned to the banking system.

According to the report, the total value of Specified Bank Notes (SBNs) in circulation as on November 08, 2016, post verification and reconciliation, was Rs 15,417.93 lakh crore, out of which currency worth Rs 15,310.73 lakh crore was returned.

In its report, the RBI stated that a grace period was provided to Indian citizens who were outside India between November 9 and December 30, 2016, to deposit SBNs held by them at any of the five Reserve Bank offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur), subject to certain conditions.

"SBNs were received by the Reserve Bank either directly or from bank branches/post offices through the currency chest mechanism. Verification and processing of the SBNs has been completed," it added.

The report further noted that the Indian economy exhibited resilience during 2017-18, with upturns in investment and construction.

"Inflation eased on a year-on-year basis in an environment characterised by high variability," the report said.

The central bank also noted that currency in circulation surpassed its pre-demonetisation level while credit growth revived to double digits from a historic low in the previous year.

"Domestic financial markets were broadly stable, with rallies in equity markets and intermittent corrections, hardening bond yields, the rupee trading with a generally appreciating bias except towards close of the year and ample liquidity in money markets," the report stated.

Lauding the implementation of the Goods and Services Tax (GST), the RBI termed it as an important milestone towards an efficient indirect tax structure.

"Implementation of GST achieved another important milestone towards an efficient indirect tax structure. On the external front, the current account deficit was comfortably financed with accretions to foreign exchange reserves," the RBI said.