The Narendra Modi government is trying to prove that the massive demonetisation move of November 8, 2017 was a success.
The government’s own audit of the cash and other transactions during the four days in December, released on Wednesday, showed that the total amount of demonetised notes received by the Government of India has exceeded the original target.
It also shows that the amount of transactions that had been completed had been reduced to a level that is equivalent to less than 2% of the total number of transactions during November.
“The audit shows that there is no doubt that demonetization is a success,” said an official statement issued by the Prime Minister’s Office on Wednesday.
The statement added that the Government is taking steps to ensure the financial security of the people.
The statement said the audit was conducted by the National Payment Corporation of India (NPCI), the central body of the Reserve Bank of India.
The audit was done on the day of demonos, the day on which the notes were first demonetized.
The Government of the day is the day when the notes are first introduced in circulation, said the statement.
It did not elaborate on how the government had calculated the value of the transaction in question.
According to the government, there were about 8.5 crore transactions during December.
According to the RBI, it took Rs 7,534 crore out of circulation.
The government also stated that about 70% of those transactions were for small amounts.
“However, some transactions, such as those for small value transactions, were not accounted for in the audit report.
We have requested the Reserve Board to examine these transactions,” the statement added.
The RBI is a part of the central government.
The RBI has been conducting the audit on behalf of the government.
A person familiar with the matter told IANS that the audit had been done in coordination with the Central Board of Direct Taxes.
“We are not surprised that the RBI is doing the audit and we are waiting for RBI to release the report,” said a person familiar.