Thursday , July 19 2018

Demonetisation was planned, decision not taken in a day: RBI Ex-deputy governor

Rama Subramaniam Gandhi

Rama Subramaniam Gandhi who was  retired  deputy governor of Reserve Bank of India says that decision on demonetisation was no taken on single day.

The Ex-deputy Governor of Reserve Bank of India Rama Subramaniam Gandhi says that normalcy has returned to the currency system where the pace of cash withdrawals and Post demonetisation has come down.

At present, R Gandhi was in the charge of Currency Management division. In an Interview to the media, R Gandhi said that the note ban was a well thought out decision which was not taken on a single day.

He added that initially it was a thought and a lot of talks had happened whether it was good or bad and the decision was not decided just overnight. If demonetiastion was to be done, then the final decision should be taken by the administration but not by the Reserve Bank of India Purview because it was a Policy decision.

When asked about the decision whether to introduce Rs 2,000 notes or the withdrawal of Rs 500 and Rs 1,000 notes he said, that the two decisions where in parallel and in 2014 they made a conclusion to introduce High denomination banknotes and on that basis they recommended Rs 5,000 and Rs 10,000 notes given the pace of inflation.

He stated that everything has a lot of backward and forward linkage and it took a lot of time to decide and the administration has made own public policy ideas about the demonetisation and the main aim is to fight against black money.

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He says that the discussions are started in January and the introduction of High denomination bank notes Rs 2,000 was a decision irrespective of demonetisation.

When asked a query whether any concern has raised by the Board of RBI, R Gandhi said that there were many concerns or questions from the Board but they have addressed them and the board appraised to know about the decision one day before the move.

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