Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
June 19, Tuesday 2018 6:41 AM       

       HEADLINES: Police driver transfered for refusing to do menial jobs                                              Youth found dead                                              Varappuzha custody death: Bail for RTF officers                                              MLA K Kunjiraman hospitalized                                              Expert panel will probe construction of check dams:Pinarayi                                              Minister hospitalised on day seven of strike                                              Four Assam rifles jawans killed in Nagaland                                              Delhi HC asks who authorised Kejriwal's sit-in at LG's office                                              Three killed, 100 injured in Japan earthquake                                              Iran's president to visit Switzerland, Austria amid nuclear deal row                                              Messi regrets missing penalty against Iceland                                              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
WhatsApp Payments to be rolled out soon: here is how it's different from competition  
Ayushman Bharat: Only half the states ready to launch scheme on August 15; UP Bihar & West Bengal not prepared yet  
Audi boss arrested over diesel scandal  
India, US officials to meet soon to discuss concerns of both sides: Prabhu  
Rupee dives to 3-week low at 68.01 on macro-liquidity shocks  
Gold rises on mild demand, silver surges for 8th session  
AFT directs govt to remove anomaly in HRA  
Grand Finale of Smart India Hackathon from June 18-22  
GST refund drive extended till June 16  
Ind-Swift Laboratories raises Rs 424.5 crore via NCDs  
RBI needs more powers to oversee PSB: Guv to panel  
RBI Guv appears before Par panel; assures steps to strengthen banking system  
India decision to increase tariff on apples to hit US growers, say Congressmen  
Snapdeal launches special store for Father's Day Gifting  
RBI releases June '18 issue of monthly bulletin  
'Trying to complete bullet train project by 2022'  
Moily honoured with 'special award' by Chennai-based NGO  
Assocham for implementation of guidelines on direct selling by states  
SBI expects Rs 30,000cr recovery from resolution under IBC  
Google will not develop AI for use in weapons: Pichai  
Economic growth may cross 8% in next 2 yrs: Prabhu  
RBI policy seems positive for growth revival: FICCI  
Bajaj Finance Limited offers health insurance on no cost EMI  
RBI gives big relief to MSME sector  
Growth indicators suggest economic revival: RBI  
 
Do you think electric bus will be a success in Kerala?
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