Economic Survey II: Did the note ban meet its intended objectives?

Demonetisation impact: Cash sucked out, digital transactions up, tax base expanded

While there is still no clarity on how many old currency notes were deposited back into the banking system, some progress has been made on achieving the other stated objectives of demonetisation, the Survey has found.

Principal among these objectives was a reduction in the use of cash in the economy, increasing the use of digital modes of transaction and expanding the tax base. 

On the “equilibrium” level of cash, the Survey reveals that as of July, the cash holding was about Rs 3.5 lakh crore or roughly 20 per cent less than what would have been the case had the pre-demonetisation