RBI Board was Never in Loop, One or Two Person were aware about Demonetisation – RTI

A day after the Supreme Court upheld the government’s decision to demonetise currency notes of Rs. 2000 and Rs. 500, an RTI query revealed that the Central Board of the Reserve Bank of India was never in loop with the decision to withdraw the currency notes.

According to a report published in Indian Express, the government was in consultation with the RBI, but the board was ‘never in loop.’

“Maybe one or two people from RBI would have known. Suddenly within half-an-hour or one hour, you issue a notice and call for a high-level meeting without even informing about the agenda,” a highly placed source was quoted by IE.

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“It is said that the government was in consultation with the RBI for six months. Maybe one or two people from RHI would have known. Suddenly within half-an-hour or one hour, you issue a notice and call a meeting without even informing about the agenda,” said an official who was part of the discussion on the issue in the RBI board.

RTI report has informed that the Central Board discussed and approved the proposal to introduce Rs. 2000 notes on May 19, 2016.

However, RBI further informed that there was no discussion on a possible withdrawal of legal tender of the Rs. 500 and Rs. 1000 notes at the May board meeting last year. The matter was also not discussed during the subsequent Central Board meeting on July 7 and August May 11, RBI said.

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Notably, Raghuram Rajan was the governor of the Reserve Bank of India when the proposal to introduce new 2000 rupee notes was approved by the RBI board in May that year.

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