RBI's annual report says 99.30% banned notes returned post demonetisation
New Delhi, Aug 29: The Reserve Bank of India (RBI) in its annual report for the year 2017-18 said that the Indian economy exhibited resilience during fiscal 2017-18, adding that the "domestic financial markets were broadly stable" during this period.
On much debated demonetisation move implemented by the Union Government in 2016, the RBI's said it has completed the tasks of processing and verifying banned currency notes. The report also said that the currency circulation in the economy has surpassed its pre-demonetisation level.
The total value of Rs 500 and Rs 1,000 notes, which were banned on November 8, 2016, was Rs 15,417.93 billion, out of which Rs 15,310.73 billion was returned, said the report. This means that around 99.30% of the banned notes were returned.
"In the evolution of monetary aggregates, currency in circulation surpassed its pre-demonetisation level while credit growth revived to double digits from a historic low in the previous year," the report said.
It said that despite high variability in the economic environment, the inflation eased on a year-on-year basis.
"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 annual report further said.
Implementation of GST achieved another important milestone towards an efficient indirect tax structure, the RBI's annual report for 2017-18 added.
"On the external front, the current account deficit was comfortably financed with accretions to foreign exchange reserves," it said.
RBI expected GDP growth to rise to 7.4 percent in FY19. However, inflation warrants continuous vigil, the report also mentioned. The central bank expects the CPI inflation to face upside risks in the remaining part of the year.