RBI Had Just One Day To ‘Consider’ Govt’s Demonetisation Move: Report

BY Edit Platter Desk | PUBLISHED: 10 January 2017

New Delhi: It was the Centre which took the decision to demonetise 500-rupee and 1,000-rupee notes and gave just one day to the Reserve Bank of India (RBI) to give its feedback, contrary to the former’s suggestions in the past that the move was taken by the central bank.

In its submission to a Parliamentary panel late on December 22, the RBI, agreeing with the Government’s rationale behind the move, made it clear that it was the Government which “advised” it to do so, The Indian Express reports.

“Government, on 7th November, 2016, advised the Reserve Bank that to mitigate the triple problems of counterfeiting, terrorist financing and black money, the Central Board of the Reserve Bank may consider withdrawal of the legal tender status of the notes in high denominations of Rs 500 and Rs 1,000,” said the RBI in a seven-page note submitted to the Parliament’s Department Related Committee of Finance headed by Congress leader M Veerappa Moily.

Click here to read the report

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Source - Anand Mishra / Indian Express