Business

Modi asks BJP members to submit bank details

29 Nov 2016 | Written by NewsBytes Desk; Edited by Sneha Johny

PM Modi directed all BJP MPs and MLAs to submit details of their bank accounts so that suspicious transactions post November 8 can be tracked.

He made the announcement at the BJP Parliamentary board meeting amid accusations that he may have tipped off several BJP members before announcing demonetization.

Meanwhile, the RBI said 60% of the demonetized notes have been accounted for.

In context: Demonetization's monetary aftermath

23 Nov 2016India and its demonetization

Earlier this month, Prime Minister Narendra Modi took a major economic step by abolishing high-value currency notes in the country.

The Prime Minister announced that all Rs.500 and Rs.1000 notes would be held invalid and in its place fresh Rs.500 and Rs.2000 notes would be issued by the banks.

This was an effort to counter rising corruption and black money in the country.

What did the demonetization result in?

Modi's latest move saw nearly 86% of the nation's currency notes in circulation being wiped out. Around Rs.6,32,600 crore in circulation was withdrawn from the economy.
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23 Nov 2016What will the RBI do with 23 billion demonetized notes?

After India's demonetization was effected earlier this month, the country's central bank is coming to terms with tackling nearly 23 billion worthless currency notes.

Senior officials from the bank stated that the currency notes will be destroyed and later dumped into various landfills.

This is touted to be the usual process followed by the RBI for soiled currency notes.

The massive tranche of worthless notes

Reports said that if the currency notes were to be stacked on top of each other, it would add up to 300 times Mount Everest's height. If it were to be laid down in a pathway, it would touch the moon and back five times!

Destroying cashHow is the RBI going to destroy the currency notes?

The RBI has around 27 shredding machines across nineteen offices across the country.

The machines will shred the expired currency notes and dump it into the landfills.

This may then be recycled as paper files, calendars, tea coasters and even cups and small trays as souvenirs.

India is currently pitched to be the second largest producer of currency notes in the world.

Garnering online salesDemonetized notes find their way into eBay

After being pitched as one of the most drastic economic moves in decades, the demonetization effect took a different turn when people started selling the currency notes online.

An interesting twist is that the bills are being sold for double their value.

Websites like eBay saw the notes being sold as 'lucky' denominations.

Other owners took to tearing and burning notes to avoid taxes.

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29 Nov 2016Modi asks BJP members to submit bank details