Modi’s Best Kept Secret to Be out This Month-End?

In the next couple of weeks, RBI may have to let out one of the best-kept secrets of demonetization — the value of banned currency notes which never came back to the central bank. The center and RBI so far did not spell out the quantum which will reveal the gains of Demonetization.

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But they will be forced to reveal that when the monetary authority will hold a meeting with its auditors later this month to put a number on the notes which were not returned. RBI has to do it now since it cannot finalize its balance sheet for the year ended June 30, 2017, and declare dividend — or, surplus — to the government.

‘Currency notes in circulation’ are considered as a liability relating to the central bank’s issues department. That notes which ever did not come back to the banks will no longer be a liability to the central bank and will be the gain of the RBI and the country due to Demonetization.