IS IT “ANSWERBANDI” ON “NOTEBANDI-DEMONETISATION” IN INDIA? - (with thanks to BALBIR SINGH SOOCH)

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Former Prime Minister Manmohan Singh and RBI Governor Urjit Patel. — File photos


A. What transpired at various levels in the run-up to the “notebandi” decision is not being put in public domain

B. Dr Manmohan Singh called it “monumental mismanagement” and “organised loot”.

C. Himself a former RBI Governor, Dr Manmohan Singh has understandably rescued Urjit Patel from tough questioning by parliamentarians.

D. What transpired at various levels in the run-up to the “notebandi” decision is not being put in public domain. Surprisingly no minutes were maintained of consultations over a decision that shook the nation, the fallout of which has drawn flack all over. Dr Manmohan Singh called it “monumental mismanagement” and “organised loot”.

Reveal it all:RBI can’t afford to duck questions:

1. Himself a former RBI Governor, Dr Manmohan Singh has understandably rescued Urjit Patel from tough questioning by parliamentarians.

2. As an institution the RBI deserves all respect and its autonomy has been recognised and appreciated in the past. All that is expected of it now is to act independent of the government and make available all the troubling information people and their representatives seek.

3. Silence over, or evasion of difficult issues will not make them go away. We have a demanding, even if raucous, democracy. If the RBI’s role in demonetisation is questioned, including by some of its former heads, the central bank should respond to what they say.

4. What transpired at various levels in the run-up to the “notebandi” decision is not being put in public domain. Surprisingly no minutes were maintained of consultations over a decision that shook the nation, the fallout of which has drawn flack all over. Dr Manmohan Singh called it “monumental mismanagement” and “organised loot”.

5. Both the RBI and the government share the blame. Agreed, civility should not be abandoned and questions should not be impolitely asked but that is no ground for the denial of information sought.

6. The BJP is selling demonetisation as an achievement in the ongoing polls.

7. It is important for the RBI to reveal all that helps the voter verify the government’s claims of success, particularly on black money.

8. A post-poll disclosure of how much demonetised cash returned to the banking system would be politically less relevant.

9. What the RBI chief has revealed is not very illuminating. If the government and the RBI had been in touch over the note ban since January last year and the actual decision was taken on May 27, 2016 as media reports suggest, then why such lack of preparedness?

10. Why a compromise on autonomy?

11. If the curbing of black money was a goal, then why print the 2,000 note?

12. There are questions the RBI and the government cannot evade.

13. The RBI chief has squandered another opportunity to lift the veil of secrecy that shrouds decision-making.

IMPORTANT COMMENTS:

Amarjit Sidhu:

1. All the previous Governors were qualified, experienced and masters in their field as compared to the present Governor who is at the mercy of the current PM. He cannot take any stand against his master. This should be a wakeup call for him to understand that he is heading an autonomous body responsible for the whole country.

Malwa:

2. Another contentious issue: while over 15 lakh crores of OLD notes have been sucked out of the economy only Rs 9-9.2 lakh crore have been been put back into circulation. This is clearly to push/force people to use plastic money, thus generate revenue for bankrupt banks in the form of fees but making life harder for illiterate rural folks.


Malwa:

3. "Did The Government Use Raghuram Rajan’s Exit To Push Through The Demonetisation?

"The government had been contemplating the move for some time, said this person. Rajan was asked for his views, which he gave in no uncertain terms, the person added. The former governor was of the view that the extent of counterfeiting was not justification enough for such an abrupt move, said the person.

Ideologically, too, Rajan has been opposed to the concept of demonetisation. While he has not commented on the government’s current decision, in 2014, Rajan, in a public lecture, questioned the effectiveness of demonetisation.

“Unfortunately, my sense is the clever find ways around it. They find ways to divide up their hoard into many smaller pieces. You do find that people, who haven’t thought of a way to convert black to white, throw it into the Hundi in some temples. I think there are ways around demonetisation. It is not that easy to flush out the black money. Raghuram Rajan, Former Governor, RBI (2014)

Courtesy by: The Tribune, VOICE OF THE PEOPLE, CHANDIGARH


Commented and Forwarded By:

BALBIR SINGH SOOCH-SIKH VICHAR MANCH

Posted on Jan 22, 17 | 12:19 pm