"Money has now been identified with its owner," said Finance Minister Arun Jaitley on 99% of demonetised currency coming back into banking system, a finding that was made by RBI in a report earlier today.
"People with inadequate understanding of how to tackle black money linked note ban with money returned to system," he further said over Opposition's criticism of the move that took place in November 8, 2016.
Jaitley said, "Objective of note ban was to bring down cash in economy, bring digitisation, expand tax base and fight black money."
A total of Rs 15.28 lakh crore was returned to the RBI through lenders.
He said cash squeeze post note ban in Chhattisgarh and J&K was evident in dip in terrorist and separatist activities.
In a veiled criticism of previous UPA regime, he said, "People who haven't taken a single step against black money haven't understood aim of note ban;deposits in banks don't legitimise it."
He said note ban was not an exercise to confiscate money and that next step will be to cleanse political funding.