As per the Reserve Bank of India Annual Report 2016 to 2017, what was the estimated value of demonetised banknotes that returned to the banking system?

Introduction / Context:
In November 2016, the Government of India demonetised high denomination currency notes. One key question in public debate was what fraction of the demonetised notes would come back into the banking system. The Reserve Bank of India Annual Report 2016 to 2017 provided an official estimate of the total value of such notes returned. This question tests factual awareness of that important figure, which often appears in economic and banking awareness sections.

Given Data / Assumptions:

• The reference is explicitly to the RBI Annual Report 2016 to 2017.
• The focus is on the value of demonetised banknotes received back by the banking system.
• Options list different values measured in lakh crore rupees.
• We assume knowledge of the approximate total value of demonetised notes and the share that returned.

Concept / Approach:
The key concept is to distinguish between the total value of notes that were demonetised and the portion that actually came back. The RBI report stated that almost all the demonetised notes returned to the banking system and gave a specific figure. Remembering that figure or at least recognising it from among the options is necessary. Eliminating unrealistic numbers that are much lower or higher than the known total also helps.

Step-by-Step Solution:
Step 1: Recall that the total amount of the demonetised currency was a little over ₹ 15 lakh crore. Step 2: The RBI Annual Report stated that a large percentage of this amount returned and gave a figure close to the original total. Step 3: Among the options, ₹ 15.28 lakh crore closely matches the widely discussed figure from the report. Step 4: Option a, ₹ 12.25 lakh crore, is significantly lower and does not match the official estimate. Step 5: Option c, ₹ 19.48 lakh crore, exceeds the original total value of demonetised notes and is therefore unrealistic. Step 6: Option d, ₹ 13.35 lakh crore, is again too low compared to the official figure. Step 7: Hence, the correct value as per the report is ₹ 15.28 lakh crore.
Verification / Alternative check:
A useful verification method is to remember that debates following the RBI report emphasised that more than 98 percent of the demonetised notes came back. Since the original total was around ₹ 15.44 lakh crore, a value slightly lower than that, such as ₹ 15.28 lakh crore, is consistent with such a high return rate. None of the other options fit this pattern, which confirms option b as correct.

Why Other Options Are Wrong:
Option a is wrong because it underestimates the amount returned by several lakh crore rupees compared to the official figure. Option c is clearly incorrect since it suggests more money returned than was originally demonetised. Option d is also too low and does not reflect the high proportion of notes that came back. Option e is a simple distractor far below the real figure.

Common Pitfalls:
Many learners remember that almost all the money came back but forget the exact number. In such situations, they may guess an approximate figure like ₹ 13 lakh crore rather than recalling ₹ 15.28 lakh crore. Another pitfall is confusing the total amount demonetised with the total returned. To avoid these errors, students should link the key numbers: total demonetised around ₹ 15.44 lakh crore and returned amount around ₹ 15.28 lakh crore, which indicates that the vast majority of notes re entered the banking system.

Final Answer:
According to the RBI Annual Report 2016 to 2017, demonetised banknotes worth about ₹ 15.28 lakh crore were received back by the banking system.