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I see some folks saying the demonetisation of the 1000 bob has failed coz a big % of the notes have failed to return. Exactly the opposite! The main objective of the demonitisation was to force people with black money to suffer losses. The more money extinguished the better!
If all the notes were returned i.e 100 percent of the 217 billion in 1000 notes was exchanged for the new notes, it means everything has been accounted for and there was no black money out there. In other words, the black money, instead of getting extinguished, got whitened.
A lot of money not coming back to be exchanged just means the hoarders — including criminals- were too afraid to exchange their old bills for new ones because going to banks or CBK was going to expose them to scrutiny and possible prosecution.
Also, it cost CBK nothing to demonitize the 1000 bob. It was done as part of the constitutional requirement to replace all the notes. Other advantages include bringing money into the formal system, cash less economy, fighting tax evasion & fighting counterfeits. BIG SUCCESS
