More than two years have passed since Prime Minister Narendra Modi announced demonetisation, a move that made almost 85 percent of the total currency notes in circulation invalid, the government has admitted that there was no impact assessment of it.

Responding to a question by P Karunakaran, CPI MP from Kasargod in Kerala and Tej Pratap Singh Yadav of Samajwadi Party from UP's Mainpuri, Minister of State for Finance Pon Radhakrishnan told the Lok Sabha that the government has not assessed the impact and after effect of demonetisation on economy.

BCCL

To the question, “whether the Government has assessed/studied the impact and after effects of demonetisation on the economy?” the minister replied “No”.

He also stated that “As per data published in Annual Report 2017-18 of the Reserve Bank of India, the total value of Specified Bank Notes (SBNs) in circulation as on November 8, 2016, post verification and reconciliation, was Rs 15,417.93 billion, and the total value of SBNs returned from circulation was Rs 15,310.73 billion.”

BCCL

In a related news on Friday, Finance Minister Arun Jaitley denied that the Reserve Bank of India, while giving its approval to the decision, had rejected two key justifications of demonetisation, curbing black money and counterfeit notes.