Some staggering figures are coming out after the Demonetization. It is said that between November 15 and December 25, 2016, 2.10 crore bank accounts were created and over Rs 3 lakh crore was deposited in them. In the total amount, 50000 Crore was cash deposit and 3 Lakh Crore was non-cash deposit.
These accounts are used for the conversion of the old legal tender. Government sources say that a huge proportion of extinguished cash has come back into the system is not a sign of failure but a testament to the policy’s success in formalizing the economy.
Incidentally, in the last 2 years, Modi government with its financial inclusion scheme, Jan Dhan, could only manage to open 20 Crore Bank Accounts but with no extra effort, we have seen around three crore new bank accounts getting opened in a month.