Objective of demonetisation was to reduce cash transactions: Niti Aayog VC

New Delhi: NITI Aayog vice-chairman Rajiv Kumar on Thursday said that the objective of demonetisation was to help reduce cash transactions.

His statement comes a day after the Reserve Bank of India (RBI) report revealed that almost all demonetised notes were returned to banks.

"Who said that the sole purpose of demonetisation was that less currency should be deposited? Over Rs 3-4 lakh crore have returned to system and are under the scanner of tax authorities. Notices were sent on 18 lakh accounts and probe is underway in lakhs of them," he told ANI.

"The currency might not have turned from black to white, but at least it has turned to grey. It is still there. Cash transactions have also been reduced. If fear has developed in the nation against cash transactions by wrong means, isn't it an effect of demonetisation?," he added.

Yesterday, the RBI in its annual report for the year 2017-18 stated that 99.3 per cent of the demonetised Rs 500 and Rs 1,000 notes have returned to the banking system.

According to the report, the total value of Specified Bank Notes (SBNs) in circulation as on November 08, 2016, post verification and reconciliation, was Rs 15,417.93 lakh crore, out of which currency worth Rs 15,310.73 lakh crore was returned.