If that story were to be repeated today, the economy would lose Rs 2 lakh crore worth of money in circulation. In 1978, notes of high-denomination – Rs 1,000, Rs 5,000 and Rs 10,000 – were just a min-iscule proportion (2%) of the total currency in circulation. Rs 500 and Rs 1000 notes now form 86% of the total currency in circulation – whose total value is Rs 14 lakh crore. Read: Banks open, hundreds form queues to exchange Rs 500, Rs 1000 notesIn contrast with 1978, when only banks and the super rich held banknotes of Rs 1000, Rs 5000 and Rs 10000, today Rs 500 and Rs 1000 notes are in everybody’s wallet. Read: Banks open, Rs 500, Rs 1000 notes banned: The big change in 17 pointsAt 2%, it would be Rs 29,700 crore, at 3% it would Rs 44,500 crore, at 5% it would be Rs 70000 crore and at 10%, Rs 1.4 lakh crore.

Source: Hindustan Times November 10, 2016 07:06 UTC