P Chidambaram writes in The Indian Express the government has claimed that demonetisation was announced on the recommendation of the RBI. One has to suspend disbelief to accept that statement. The Prime Minister’s speech on November 8 made no reference to the RBI’s recommendation. On the contrary, the government’s and the BJP’s spokespersons boasted that it was entirely Mr Narendra Modi’s brainchild. It was an idea imposed from above and the RBI betrayed its mandate. The RBI has come under severe criticism both within India and abroad. I would like to believe that the RBI has not fallen victim to ‘institutional capture’ by the current regime. I would like to believe that years of nurturing the autonomy of the RBI have not gone to waste.
Source - P Chidambaram / The Indian Express