Notes Ban Proposed Hours Before Telecast of Modi’s Speech

The Reserve Bank of India says that the ban on Rs 1000, 500 notes was proposed hours before the telecast of Prime Minister Narendra Modi’s speech on November 8th. The Central Bank says the decision was to take only hours before even though the demonetization plan had been under discussion for long and consultations were being held.

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Earlier, everyone is surprised how the government has kept this as a secret as there is no hint about that in media. It was really tough to believe that such crucial decision was taken in such haste but then if it is true, it explains the bad implementation of the after effects of Demonetization.

The Reserve Bank of India Act, 1934, empowers the Union government to demonetise any series of banknotes. The government, however, can take this decision only on the recommendation of the RBI’s central board. The bank’s central board of directors made the recommendation at its meeting in New Delhi on November 8.

Probably, the meeting was timed in such a way there is no time for the leakage of the news. It also appears to be a political decision and the recommendation by the bank’s central board of directors was a mere formality. The bank had already printed Rs 4.94 lakh crore in Rs 2,000 notes by November 8. So, the decision in haste may not be totally true as they say.