Demonetisation advantage

New Delhi, May 26: We all knew that The Prime Minister Narendra Modi has announced an outstanding decision on November 8, to curb the black money.

Here the news that India's economy has received a Rs 5 lakh crore advantage thanks to PM Narendra Modi's decision to scrap the old Rs 500 and Rs 1,000 notes, an assessment report has found.

The old high denomination currency notes were more than 86 percent of total currency in circulation at the time of their recall. The decision led to the severe cash crunch in the country and threw people at ATM booths and bank counters.

According to the report claims that there were around Rs 17.77 lakh crore worth of currency notes in circulation around November 8 last year when note ban was effected overnight.

It is believed that had the drive of demonetization not taken place, total currency in circulation would have now gone up to Rs 19.25 lakh crore worth.

In April this year, the RBI in its briefing on total currency in circulation said that total currency in circulation by April-end in a country was Rs 14.2 lakh crore. "This means that the economy now has roughly Rs 5 lakh crore cash less than the amount it would have had if note ban had not happened," the statement added.

However many experts had said at that time that demonetization drive would surely leave some negative effect in shorter term due to which the common man would face certain hardships.

Finance Minister Arun Jaitley had also flagged some concerns and said that note ban blues will last only for a short period of time.