Here's how RBI executed decision to demonetise high-value currency notes

Over 99% of banned notes came back into the RBI's currency chest

According to the RBI, the work between November 8, 2016 (the date on which the currency ban was announced), and December 31, 2016, and even beyond, was efficiently carried out. 

With tight deadlines, the RBI says it worked under enormous pressure to take back the banned notes after screening them and then quickly re-filled the system with new notes to ensure minimum hardship to people.

RBI frequently issued guidances about the procedure for returning the banned notes (over 50 times in a span of 50-odd days). One of the guidances issued by the RBI made it mandatory for a person to get his or her finger marked with indelible ink after the return of banned notes.

 

However, it failed to check unscrupulous acts at certain branches of commercial banks. Some staff of private banks were found to be involved in money-laundering activities and facilitating large deposits of banned notes.

In December 2016, the RBI ruled out any immediate bounty from demonetisation, saying that the old notes carried a liability only as long as their legal tender was valid.

Over 99 per cent of banned notes came back into the RBI’s currency chest.