> The money is back in circulation after people paying at least 50% tax if their cash was unaccounted for, but could range up to 200% penalty if the accounting

> The money is back in circulation after people paying at least 50% tax if their cash was unaccounted for, but could range up to 200% penalty if the accounting was particularly shady. Which is why you see such a high deposit rate. People would rather see 50% of their cash than nothing. You should look at the actual number of prosecution claims and convictions by the Income Tax department and the number of instances wherein compounding was admitted (taxpayers admitted to hiding income and paid a penalty), before you call demonetisation a big success in this regard. Cases filed: 2225 Convictions: 48 Instances of compounding: 1052 Source: https://timesofindia.indiatimes.com/business/india-business/i-t-prosecution-cases-treble-in-2017-conviction-up-four-times/articleshow/62481108.cms https://timesofindia.indiatimes.com/business/india-business/... Also the voluntary income disclosure scheme of 2016 ran prior to demonetisation. Not many people signed up for that, but for whomever did so, it had nothing to do with demonetisation.