Reading Comprehension Passage: 42 | 100 RC`s for Government Exams Preparation - Bank Exams PDF Download

Paragraph 5- lines 2,3, 4 and 5 mention the reasons for the decrease in cash in circulation.
'...The total currency in circulation, according to the RBI’s annual report, is about Rs 2 lakh crore short of the pre-demonetisation period. This is partly due to the increase in focus on printing of lower denomination currency notes. Initially, the RBI had focused on printing the Rs 2,000 notes to rapidly remonetise the economy. In addition, there could be some reluctance to hold cash. The replacement of cash transactions by digital transactions, the slowdown in small-scale industry, in the rural economy, construction and other informal segments of the economy could also lead to somewhat lower demand for cash. However, it is less probable that the cash of black money holders has not been withdrawn because they are unlikely to leave that in the bank accounts of the money launderers for long. It might have partly been settled for bitcoins, gold, or similar assets that are difficult to trace...'
Option D is opposite to what has been mentioned. There has been an increase and not decrease in printing of lower denomination notes.
Hence Option D is the correct answer.

Paragraph 1 lines 2, 3 and 4 clearly specify the reasons for the shortfall.
'...The RBI Annual Report reveals that almost all demonetized notes have been returned to the central bank. This number does not include the old notes with District Central Cooperative Banks for the short window when they were allowed to accept deposits. It also does not include the notes within Nepal. The shortfall of Rs 16,050 crore between the notes in circulation when the notes were demonetised and those that were returned, could therefore also be made up once these notes are returned to the RBI...'
Option E is mentioned as one of the reasons and is the correct answer.

The entire passage is about the effectiveness of demonetization wherein the author states what innovative and adaptive ideas people and companies came up with to deal with it. It also talks about how despite best efforts, people were successful in getting their illegal cash deposited and in general legalize unaccounted cash.
Options A, C and E are not mentioned anywhere in the passage. Option D is mentioned briefly but does not form the theme of the entire passage.
Option B fits in well with the general tone of the passage.

Option A can be found in paragraph 2 line 1.
Options B and D are corroborated by paragraph 2 lines 2, 3 and 4.  
Option C is the opposite of what has been stated in Paragraph 2 line 5. Bank employees were helpful in helping their regular customer deal with demonetization.
'...It should come as no surprise that almost all the notes have been returned, including the stock of black money held as cash. To the extent that it was possible to exchange money legally, individuals did so. When cash limits for withdrawal made it difficult, friends and families participated. The inconvenience of long queues was overcome by household staff. A private company offered booking of “chhotus”, who would stand in long queues for people for Rs 90 an hour until their turn came. Bank employees were averse to being unhelpful to regular customers and found ways to serve them. Innumerable ways were found to work around the changing rules of exchange, cash limits, indelible ink and specified uses of old notes...'
Hence Option C is correct.

The passage talks about demonetization and its actual benefits or the lack of it thereof. The author starts with the RBI annual report’s findings about the demonetized notes coming back to it and analyses the reasons for the same. The entire passage consists of the author taking a detached clinical and analytical view of how people innovated during demonetization to stay ahead of the government.
Hence, options A, B, C and D can be ruled out as the author’s tone is not any of these.
Option E is correct as the author delves into the subject and explains it in detail.