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Former RBI governor Bimal Jalan questions demonetisation

"It could be done in a way where people are prepared. Telling people that we are concerned about black money is also about giving them a notice. Supposing, instead of being a secret decision, if it was announced in public. What would have happened?" he further

Arnima Dwivedi

Arnima DwivediBy Arnima Dwivedi

Published on 14 Dec 2016 9:47 AM GMT

Former RBI governor Bimal Jalan questions demonetisation
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New Delhi: Former RBI governor Bimal Jalan has questioned the timing and secrecy of the Centre’s decision to demonetise Rs 1000 and 500 (old) currency notes.

Jalan said that there needs to be a good reason to make such a move. "When you demonetise a legal tender, there must be a very good reason to do it. War, security threat. What demonetisation does is to give, as it were, a message to people that this government will not tolerate black money. The second part, which is equally relevant is, why now," he stated.

Jalan who was the RBI governor from year 1997 to 2003, rubbishede all the arguments given by the Centre that secrecy was essential for the success of the move. Jalan said, "There is no reason to my mind to be secretive, unless there is an emergency. I want to do it in three weeks, or two weeks or one week. As in a surgical strike. But this is not the same thing. On that, there can’t be two views. I am talking as a citizen here."

What else he said:

  • It could be done in a way where people are prepared.
  • 90 to 95 percent of people in this country do not have black money so any policy to tackle it must strike a balance.
  • We need to do something with a notice and in a way where the majority of the people are not hurt.
  • You see the end is fine, you have to carefully choose the means to achieve this end.

Arnima Dwivedi

Arnima Dwivedi

A journalist, presently working as a sub-editor with newstrack.com. I love exploring new genres of humans and humanity.

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