Sharma stressed it was the prime minister's "direct responsibility" as it was his personal decision to implement note ban.
Data compiled by RBI showed that total electronic payment system which stood at 67.15 crore in volume, reached to a whopping 95.75 crore in December 2016 (end of demonetisation move), further to 89.69 crore by March 2017 and to 86.24 crore by end of July 2017.This government is responsible for this... After 10 months of demonetization, it is the first time that the RBI has issued the figures.
Left: Indian PM Modi during demonetization speech; Right: People standing in long queues during note ban. The idea was to target both counterfeit currency and "black money", or unaccounted wealth, the prime minister told the nation.
Modi said that in November, notes of 500 and 1,000 rupees had been declared invalid, thereby bringing black money back into the economy in large quantities. Out of which bank received only 15.28 lakh crore. Perhaps, Prime Minister Narendra Modi too should have listened to his predecessor and well-known economist Manmohan Singh regarding demonetisation and its impact on the Gross Domestic Product (GDP) of the country.
RBI being the central bank of India could have prevented the note ban exercise.
The biggest embarrassment for the government was when it claimed that more than 99 percent of the cash had been deposited. But the latest GDP figures show how the economy has dipped from 7.9% in April-June 2016 to 5.7% for the corresponding period this year. While the opposition is attacking the Modi-led NDA government and the government is defending itself completely and everyone is busy giving their arguments.
Experts were also of the opinion that if the banking system got less demonetised money back then the RBI would benefit because of lower liability and higher assets.
Narendra Modi had also claimed that the note ban will curb the terror funding and will break the backbone of terrorism and Naxalism.
Besides, new Rs 500 and Rs 2,000 notes, the RBI has also circulated new Rs 200 notes last week. Though Jaitley claimed that "terrorist and Naxalite financing stopped nearly entirely due to demonetisation", he or the Modi government have failed to provide any evidence substantiating this claim so far.
Finance Minister Arun Jaitley on Thursday that said the fallout of demonetisation is on predicted lines. Black money is essentially money that has been earned but on which taxes haven't been paid.
Jaitley cleared that the objective was not of seizing any money, the money deposited in the banking system does not mean that the whole money is valid. It is now up to the tax department to do its job, he added.
Although the government had not initially stated that promoting digital transactions was a part of demonetisation, it later said that one of the aims of the government was to promote digital spending. "There is no evidence to suggest that there is sharp rise in non-cash transaction".
"Demonetisation is the biggest scam, as the government has helped the wrong people legitimise their illegitimate money through it and has betrayed the poor people of the country with false promises", he said. Holders of old notes were given a 50-day window to deposit them in banks.