Was never asked to decide on demonetisation during my RBI tenure: Raghuram Rajan


New Delhi, Sep 3 (Zee News): Making disclosure on demonetisation decision taken by the government during his Governership of the Reserve Bank of India (RBI) in his latest book - I do what I do – Raghuram Rajan said that he was not in favour of note ban as short term economic costs associated with such a disruptive decision would exceed long term benefits.

The former Governor of the RBI writes that the Central Bank wasn't asked to take such a decision at any point during his tenure at the Reserve Bank.

Rajan's book gives a wonderful insight in form of various accounts reflecting his very unstable relationship with the present government.

He also wrote that he was asked by the government in February 2016 for his view on demonetisation, which he gave orally. Although there might be long-term benefits, he felt the likely short-term economic costs would outweigh them.

He didn’t elaborate on the short-term costs or the possible long-term benefits, but as the RBI governor he "felt there were alternatives to achieve the main goals."

  

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Comment on this article

  • j.anata, Mangaluru / Bengaluru

    Sun, Sep 03 2017

    Modi & Co knew you will not handle it effectively! Another tale of sour grapes as usual

    DisAgree [13] Agree Reply Report Abuse

  • Shetty, Mangalore

    Sun, Sep 03 2017

    He was a congress stooge in the RBI & was honorably kicked out....

    Congi had corrupt moles in virtually every govt establishment. Modiji had a herculean task to clean up all these termites who were eating up our nations wealth...

    Under him the RBI never red flagged any big loan to defaulters till 2014. Mallya was an example ??

    What was he doing when SBI/PNB were repeatedly financing Mallya??

    DisAgree [8] Agree [1] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Sep 03 2017

    Ambani & Adani decided Demonetization to convert all their Black Money ...

    DisAgree [7] Agree [43] Reply Report Abuse

  • Nawaz, Udupi/ Kuwait

    Sun, Sep 03 2017

    When Chaiwala is the lone decision maker on each and every matter purely depending on his intuitions and not giving importance to educated people, we Indians collectively and silently have to face all the problems without uttering a single word. It's our Karma.

    DisAgree [5] Agree [33] Reply Report Abuse

  • Jeevan, mangalore

    Sun, Sep 03 2017

    Congress has done nothing to Protect Gou Mata. At least BJP is doing something for Cows.

    Economy will be high and low. But Slaughtered Cows will never come back

    Jai ho Modiji and Yogiji

    DisAgree [45] Agree [5] Reply Report Abuse

  • Anil, Mp

    Sun, Sep 03 2017

    BJP is only fit for cow protection only....
    So many soldiers die in border of Pakistan.... But our PM who claimed to bring 10 heads is sitting like a hen.....

    DisAgree Agree [7] Reply Report Abuse

  • Anil, Mp

    Sun, Sep 03 2017

    We all know that feku Modi's Bhakts lack comman sense and knowledge....
    Here issue was of Raghuram Rajan statement..... But feku Modi's Bhakt is talking abt COW slaughter.....

    DisAgree Agree [6] Reply Report Abuse

  • Shankar, Mangalore

    Sun, Sep 03 2017

    Raghuram Rajan should stop thinking that he is the ONLY brain in the current world economy!!

    DisAgree [71] Agree [11] Reply Report Abuse

  • prem, moodbidri

    Sun, Sep 03 2017

    also, FEKU should stop thinking, he is one and only strongest world leader

    DisAgree Agree [8] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Sun, Sep 03 2017

    Mr. Raghu Ram Rajan had tackled very well the money market and liquidity issues concerning our country during his tenure as the RBI Governor. His approach and tough stance against the waiver of agriculture loans by Banks is commendable. He is like a class teacher and made his every colleague a co pilot to steer the Banking sector. Very good intellectual, West or east such people deliver the absolute necessary treatment for the economic diseases.

    DisAgree [5] Agree [49] Reply Report Abuse

  • sri_elder, Karkala

    Sun, Sep 03 2017

    I think most of the nationalized banks are very well regulated..
    But cooperative banks are very poorly regulated...
    Lot of unaccounted money is with cooperative banks and private financiers...

    DisAgree [30] Agree [6] Reply Report Abuse

  • Aubb, Kuwait

    Sun, Sep 03 2017

    Sounds like you are so well informed about the real position of nationalized banks in India.....lol!!!

    DisAgree Agree [21] Reply Report Abuse


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