28 percent Citizens say they are yet to deposit their old currency in the bank

November 30, 2016, New Delhi, India: 28 percent citizens surveyed have indicated that they are yet to deposit their old 500/1000 currency in the bank and plan to do it before Dec 30th. These were the results of poll conducted by LocalCircles, a community engagement platform in which over 8000 citizens from across 150 cities in India participated.

If the poll results were to be held as a basis and the 28 percent number applied to the total value of 14.2 trillion rupees of old 500 and 1000 currency notes, it indicates that another 4 trillion rupees may get deposited between now and Dec 30th.

While 28 percent indicated they were yet to deposit their old currency, approximately 60 percent indicated that they have already deposited their old currency in the bank. Approximately 8 percent people said they don’t need or want to deposit the old notes while the remaining 4 percent said they will be using the old notes where they are being accepted.

The Reserve Bank of India till Monday, Nov 28th had already received 8.4 trillion rupees in old 500 and 1000 notes. On the same day, the Government announced that it is introducing a scheme which will allow those with black money to disclose it, pay 50 percent in taxes and enjoy immunity from wealth tax, civil and other taxation laws. 25% of the money deposited will be available for withdrawal immediately while another 25% will be available for withdrawal after four years.

The scheme has gotten mixed responses from the citizens so far. Some citizens say that this will allow the black money hoarders to continue to enjoy a portion of their money and whether the pain, inconvenience and business slowdown faced by the common citizenry was worth it. Others suggest that given the current circumstances, this may be the best step to maximize tax collection and bring as many black money hoarders under the tax net and minimize laundering.