This is why RBI is not answering questions on why it banned Rs 500/Rs 1000 notes and it is quite serious
Advertisement
Citing danger to life and national security, India's central bank, the Reserve Bank of India (RBI ), refused to share specific details of Prime Minister Narendra Modi's ban on high-value banknotes. This deepens the mystery over who took the unprecedented decision.
TheCabinet has accepted that it was the RBI who recommended the move and was announced by PM Modi on Nov. 8, Power Minister Piyush Goyal had told parliament.
According to a report by Bloomberg, the RBI board approved the ban three-hours before PM Modi's speech and hadn't discussed the matter beforehand.
On the other hand, the RBI told a lawmakers' panel that the government had "advised" the monetary authority to "consider" the ban a day before the RBI board made its recommendation. The government then "considered the recommendations" and decided to withdraw the notes, culminating in PM Modi's address that blindsided the nation.
Now, more clarity is expected on January 20th, when RBI GovernorUrjit Patel deposes before a parliamentary committee. Details are essential to help assess the success of the shock move as well as gauge the impact of the decision on Asia's No. 3 economy.
"It is very perplexing that the RBI doesn't answer questions about how the decision was arrived at. There are concerns that in the whole process the RBI has been sidelined by the government and that raises questions about its independence," Shilan Shah, Singapore-based India Economist at Capital Economics, told ET.
The central bank as of January 11th, had answered five out of 14, disclosing the date and time of the RBI's board meeting and the fact that the board had never discussed demonetization before Nov. 8
It also said it doesn't have information to answer one question, on how many of the worthless notes have been deposited at commercial banks
It transferred two questions on printing of new notes to organizations that manage the presses
The RBI said that a question asking "what prompted the board to discuss and approve the withdrawal of notes" doesn't come under the definition of "information" under theRTI Act
To a question seeking details on the number of demonetized notes already at banks on the evening of PM Modi's speech, the RBI claimed an exemption, citing danger to the life or physical safety of anyone who disclosed this information to the public
The RBI also claimed exemptions on two questions seeking detail on its preparations for the demonetization and studies it used to forecast the impact of the move. Sharing these "sensitive matters" would endanger India's sovereignty, integrity and security, according to the RBI
The use of those specific exemptions are "perplexing," Capital Economics's Shah said.Shailesh Gandhi , a former bureaucrat with the Central Information Commission , told the FirstPost website on December 31st that the RBI's attitude of stonewalling smacked of "sheer arrogance."
"What the RBI is doing by refusing to answer queries under RTI is denying citizens their fundamental rights," Gandhi said.
Advertisement
The
According to a report by Bloomberg, the RBI board approved the ban three-hours before PM Modi's speech and hadn't discussed the matter beforehand.
On the other hand, the RBI told a lawmakers' panel that the government had "advised" the monetary authority to "consider" the ban a day before the RBI board made its recommendation. The government then "considered the recommendations" and decided to withdraw the notes, culminating in PM Modi's address that blindsided the nation.
Now, more clarity is expected on January 20th, when RBI Governor
Advertisement
The central bank as of January 11th, had answered five out of 14, disclosing the date and time of the RBI's board meeting and the fact that the board had never discussed demonetization before Nov. 8
It also said it doesn't have information to answer one question, on how many of the worthless notes have been deposited at commercial banks
It transferred two questions on printing of new notes to organizations that manage the presses
The RBI said that a question asking "what prompted the board to discuss and approve the withdrawal of notes" doesn't come under the definition of "information" under the
Advertisement
Also, RBI provided different answers to a question asked three times, seeking details on board members who opposed the move. In two replies the RBI said "it is a matter of fact that the decision was unanimous." In a separate response, it said "this information is not available on record"To a question seeking details on the number of demonetized notes already at banks on the evening of PM Modi's speech, the RBI claimed an exemption, citing danger to the life or physical safety of anyone who disclosed this information to the public
The RBI also claimed exemptions on two questions seeking detail on its preparations for the demonetization and studies it used to forecast the impact of the move. Sharing these "sensitive matters" would endanger India's sovereignty, integrity and security, according to the RBI
The use of those specific exemptions are "perplexing," Capital Economics's Shah said.
"What the RBI is doing by refusing to answer queries under RTI is denying citizens their fundamental rights," Gandhi said.
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member