Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
November 24, Friday 2017 11:20 AM       

       HEADLINES: Swift not She is wealth: Family takes back bride                                              Chennithala welcomes economic status-based reservation in Devaswom board                                              SC to hear plea challenging Asthana's appointment                                              Vyapam scam: 30 Interim bail applications rejected                                              Beware of Chinese, banned Baloch leader Mehran Marri tells Pak                                              Here's when Federer felt insulted                                              BCCI has lost its reputation: Anurag Thakur                                              Hong Kong Open: Sindhu advances to quarter finals                                              Virat Kohli slams poor planning by BCCI ahead of SA tour                                              Kaumudi Facebook
       BUSINESS Next Article: Finance Ministry dismisses penalty levied for late filing of GSTR 3B for July  
       Not asked on demonetisation during my tenure: Rajan
 
         Posted on :17:21:06 Sep 3, 2017
   
A A
       Last edited on:17:21:06 Sep 3, 2017
         Tags: Raghuram Rajan on demonetisation
 

NEW DELHI: 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.”

"The RBI flagged what would happen if preparation was inadequate," the paper cited Rajan as saying in the book that will be released next week.

Rajan also told the newspaper in an interview that the demonetization had a disruptive impact on the economy.

"I think all said and done, it would be fair to say the intent was good. But certainly at this point, one still cannot in any way say it has been an economic success. But again, as I said, only time will tell," he was quoted as saying.

Indians returned most of the estimated 15.4 trillion rupees ($242 billion) in high-currency bills removed from circulation last year, the RBI said in its annual report on Wednesday.

Modi had been intending to make it difficult for hoarders of undeclared wealth to exchange their undeclared cash for legal tender, but it seems most of it was returned by individuals, implying there was a very small amount of unaccounted money held in cash or evaders had managed to legalise their unaccounted money.

While Modi`s drive to unearth unaccounted wealth did not deliver the desired result, it hurt consumer demand in a country where most people are paid in, and buy what they need with, cash.

India`s economy lost further steam in the quarter to June as growth slid to 5.7 per cent, its lowest level in more than three years and a marked slowdown from a 6.1 per cent growth in the January-March period.

A A
       BUSINESS
Next Article: Finance Ministry dismisses penalty levied for late filing of GSTR 3B for July
 
 
BUSINESS HEADLINES
SBI to launch YONO on Friday  
Chinese Internet Giant starts mining for Bitcoins  
Bharti family pledges Rs. 7000 cr to philanthrophy  
Google announces 130K scholarships in partnership with Pluralsight and Udacity  
Better use of technology has saved Rs. 65,000 cr in subsidies: Modi  
Hackers stole data from 57 million Uber riders, drivers: CEO  
Need to give push to reforms with human face: Venkaiah Naidu  
Govt sets up task force to review income tax laws  
43.67 lakh biz file initial GST returns for October  
India advances three spots to 51 on IMD World Talent Ranking  
Sensex stays up for 4th day, spurred by RIL  
Sensex, Nifty end higher for 3rd day in volatile trade  
7.5-8 pct GDP growth expected this year: NITI Aayog VC  
Sensex loses sheen, IT, metal stocks weigh  
Chances of confirmation of wait list tickets during holidays now high: study  
Govt seeks Rs. 13,000-cr surplus from RBI  
HC judges, experts brainstorm on likely GST litigations  
Manmohan Singh corners Centre over GST  
Congress raises questions over Moody's reliability  
Nothing to celebrate Moody's rating: Yechury  
Moody's rating is answer to sceptics: Arun Jaitley  
Moody's ups India credit rating  
Sensex zooms 414 points after Moody's ups India rating  
Industry pitches for bringing natural gas under GST  
Cabinet permits export of all types of pulses  
 
Do you think that all charges against actor Dileep under various IPC sections will stand in the court?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy