RBI says 99.3% of demonetised currency is back: What went wrong with the government's black money hunt

That 99.3 percent of about Rs 16 lakh crore in the form of the banned Rs 500 and Rs 1000 notes have found their way back into the banking system has given Prime Minister Narendra Modi’s detractors the stick to beat him with. Apart from neutralising terrorists’ funds suspected to be largely held in these two high denominations notes – Rs 500, Rs 1,000 – and stopping counterfeit currency note industry patronised by Pakistan, the major objective of demonetisation announced at 8 PM on 8 November 2016 by Modi was to unearth black money largely suspected to have been hoarded in high denomination notes. There were reports of blue collared workers striking it rich by repeatedly standing before the exchange windows of various banks fronting for the black money owners. The Pradhan Mantri Garib Kalyan Yojana that was effectively an amnesty scheme for those who had blithely deposited their black money on or before 31 December 2016 with a stiff impost unfurled hot on the heels of demonetisation was not taken seriously for two reasons—stiff impost and smug knowledge that they can cross the bridge when they come to it. For black money owners, the short duration exchange counter was a godsend because it left no trace unless the government scrutinised them to zero in on those repeatedly queuing up.