Demonetisation : RBI Vs Modi Government – Who Initiated The Idea?

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"The move is being hailed as revolutionary but our real fear is that the inconvenience being caused to people could turn the tables on us," a senior state executive member said.

Image Credit : EconomicsTimes

RBI and Modi Government are in conflict regarding “Who Initiate the Demonetisation Idea”.

General Public, is still carrying a emotional pain of demonetisation and felt that it was forced on us for something as good as Government had propagated about. They are still carrying the image that it was initiated for good and have curbed the menace of Terror FinancingCounterfeit of CurrencyBlack Money, Cashless Economy etc. The perception of Demonetisation is as same as Dettol vs Savlon case study. Medical Reports suggest Savlon a better healer though Dettol is a success and Savlon is no where around Dettol. Dettol is also a healer but it hurts. Public went ahead, having suffered, and supported Demonetisation emotionally on this perception.

Atleast, when it is almost visible that Demonetisation has failed to produce desire outcome, or partial even, to control the evils of Terror Financing, Counterfeit of Currency, Black Money & Cashless Economy

Now Big Question for tonight, How & Where The Failure of Demonetisation Exercise will Dumb upon. No one wants to take credit of it, atleast on papers.

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Is it Advised By RBI to the Government ?

RBI, in its 7 page note submitted to the House Panel, Parliament’s Department Related Committee on Finance headed by Congress leader Veerappa Moily, says it was the government that had “advised” the RBI to withdraw the Rs 500 and Rs 1000 banknotes as reported by FirstPost,

“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,” As quoted by IndianExpress

  • As per the RBI’s note, the RBI Central Board met the very next day to “consider the Government’s advice,” and decided to recommend to Modi Government that same be withdrawn.”
  • The Modi Government “considered the recommendations” to withdraw the notes. On the same evening, Modi Government had addressed the nation to withdraw the notes effective midnight November 8.

Is it Advised By Government to RBI ?

On contrary, Piyush Goyal, Union Minister for Power, Coal, New and Renewable Energy, during a debate on demonetisation in the Rajya Sabha said that the decision to demonetise was taken by the RBI Board.

“Reserve Bank ke Board ne yah nirnay liya. Isko Sarkar ke paas bheja aur sarkar ne is nirnay ki sarahna karte hue, cabinet ne ise manjoori di ki paanch sau or hazar ke purane noton ko radd kiya jaaye, naye notes aaye (The Board of Reserve Bank took this decision, sent it before the government and with the government endorsing it, Cabinet gave its nod to it to demonetise the old currency notes of Rs 500 and Rs 1000 and bring new notes),” as quoted.

Check the Video. A Must Watch

Full Speech by Mr PM while addressing the Nation

Source : IndianExpress & FirstPost

Disclaimer : This article is Sole opinion of Author and do not necessarily reflect the official policy or position of Irony Of India . The writers are solely responsible for any claims arising out of the contents of this article.

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