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Demonetization: 40 days, 2 crore new bank accounts, Rs 3 lakh crore in deposits

Two crore new bank accounts were opened in 40 days after demonetization and Rs 3 lakh crore was deposited in them, a report in The Economic Times said.

The data about the new bank accounts and deposits was compiled by Financial Intelligence Unit (FIU) and was later accessed by the government.

According to it, 2.10 crore bank accounts were created and over Rs 3 crore was deposited from November 15 till December 25, the report said.

Out of this, Rs 3 lakh crore was deposited in the form of cheques, drafts, and so on. While around Rs 50,000 crore was in cash, the report said.

According to the last Reserve Bank of India (RBI) data, the banks had received nearly Rs 13 lakh crore in deposits after the government’s move to demonetize Rs 500 and Rs 1,000 notes. This is against the Rs 14 lakh crore that was taken out of the system by the move. Several experts have thus termed the scheme a failure, given that black money hoarders found a way around the restrictions to deposit their money into bank accounts.

However, according to unnamed government officials quoted in the story, “the fact that a huge proportion of extinguished cash has come back into the system is not a sign of failure but a testament to the policy’s success in formalising the economy.”