RBI No Better Than Common Man : Followed Government on Demonetisation

Though Demonetisation has ended but it has left people with a number of questions. The Reserve Bank of India or RBI offered explanation of notes ban to parliamentary panel saying that it was government’s decision of cancelling high-denomination notes and the central bank felt that it was the most opportune time for such a proposal.
The decision was proposed to RBI on November 7, just a day later the Demonetisation drive was implemented in the country after RBI board reviewed the proposal.
Senior minister Piyush Goyal earlier said that the government had followed all rules in introducing notes ban, though he did not say that RBI was merely presented with the decision taken solely by the Government.
In May, the government advised RBI to introduce Rs. 2,000 notes on the basis of the fact that introducing new notes will help in abolition of black money.
Considering the drawback of the drive which is obviously lack of management system RBI said that it felt there was enough currency to counter the impact of the notes ban but the fact is that there aren't enough new notes to meet demand even now. RBI Governor Urjit Patel has been summoned by another parliamentary panel on January 20 to explain the process of Demonetisation and its impact on the country.

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