The intention of the whole stint to punish the black money holders has become questionable after the 55 days of demonetisation. It is overwhelming to know that just about all the currency bills banned have been deposit. The government has initially estimated that of 15.4 trillion rupees, around 5 trillion rupees was undeclared which would not return. However, around 14.97 trillion rupees have been deposited as of the deadline 30 December.

The futile black money curbing initiative has put 121 crore population of the country under the weather. The stint appears to be more of stopping the black money holders, rather than punishing. It is estimated that banks have distributed roughly 8 trillion rupees in new currency denominations. Indisputably there is certain portion of those deposits which formerly was black money and is now inside the tax reporting system.

This comes as a setback for Prime Minister Narendra Modi who has been widely campaigning the anti-corruption measure and boosting his government’s credentials. Finance minister Arun Jaitley at the outset said that a certain proportion of the demonetized notes would remain outside the banking system and will be removed, thus providing a blow to the black economy and a fiscal boost to the government.

With the amended tax law allowing people to declare their black money, they later realized that most of the high denomination notes in circulation are being deposited. The Modi Government time and again claimed that the Income Tax authorities will track these people down as their funds entered the banking system.RBI’s stingy attitude towards releasing the data is the domino effect.

The data might further aggravate the dents in Modi led government significantly impacting the Assembly elections in February of Uttar Pradesh. Finance Gurus including Man Mohan Singh have critiqued that the government was ill-advised and tried to bite off more than one can chew.