Source: India Live Today
The Economic Survey, tabled in Parliament on Tuesday, said that the amount of potential black money in the system could be Rs 3 lakh crore or Rs 7.3 lakh crore.
The survey has used assumption of soil rates- rate at which notes are considered to be too damaged to use and have been returned to the central bank – of other countries to estimate value of black money.
“Using relative soil rates for the $50 and $20 notes and applying them to comparable Indian high denomination notes, yields an estimate of the amount not used for transactions, and hence potentially black, of about Rs 3 lakh crore,” said the Economic Survey.
Low denomination notes have highest soil rate. As per RBI data, low denomination notes have a soil rate of 33 percent per year, Rs 500 note 22 percent, and the Rs 1000 just 11 percent.
Earlier,the government had demonetised two largest denomination notes-Rs 1000 and Rs 500- to curb black money, corruption and counterfeiting.