Despite RBI keeping itself off on some matters under RTI, people have managed to get some interesting information. As per a recent RTI notification by a daring Mr Anil Galgali (thank you so much), we get some data on currency figures with RBI on 8 Nov 2016.
RBI said on 8 NOv 2016, it had following denominations:
|08-Nov-16||Total Pieces in Million||40825.59||9497.11||6586.83||24983.29||22760.51||9131.41||113784.74|
|08-Nov-16||Total Value in Crore||40825.59||18994.21||32934.13||249832.93||1138025.37||913141.15||2393753.39|
The new notes break up was:
|Rs 500||Rs 2000|
|08-Nov-16||Total Pieces in Million||0||2473.2|
|08-Nov-16||Total Value in Crore||0||494640|
Wow. This shows the preparedness. The Government withdrew notes worth Rs 20.51 lakh crore (old Rs 500 and old Rs 1000) but had just Rs 4.94 lakh crore that too entirely of Rs 2000 notes which is just 24.1% of the money. The media has picked this story well.
However, there is another side of the story. It is the differences in currency reporting figures.
As per RBI, currency in circulation on 4 Nov 2016 (closest date to demonetisation date 8 Nov 2016) as per WSS is Rs 17.19 lakh crore. However, on 8 Nov 2016 RBI says total currency volume of 6 currencies was Rs 23.93 lakh crore. Total currency including small coins etc should make the total currency even higher.
One is wondering what explains this huge difference? Is it something to do with Currency chest data which is not included in circulation data? But then where is it reported and why is it not part of entire circulation? Are we so far underestimating the total currency in circulation?
As I understand, currency data is a stock, so the confusion over stock and flow issues is perhaps not there. Or is it?
One is confused about this entire currency exercise. It will be great if someone can explain all this. Least RBI can do is release a detailed paper explaining all these ideas in one place..