Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
November 21, Tuesday 2017 7:23 PM       

       HEADLINES: Purchasing laptop under IT@school: Laptop price reduced by Rs 455                                              One arrested in connection with attack on Mayor                                              There was no pressure: Justice P S Antony                                              Clashes in Munnar hartal, CPI not participating                                              ‘Honey trap’ case against A K Saseendran: Commission submits report                                              ‘Padmavati’ row: Kamal wants Deepika’s head 'saved'                                              Indian Army breaks world record with 58 men on single bike                                              IFFI 2017: Sridevi inaugurates Indian Panorama                                              India’s nominee Dalveer Bhandari re-elected to ICJ                                              US to impose ‘highest level’ sanctions on N Korea: Trump                                              At least 50 killed in suicide attack in Nigeria                                              Kohli climbs to fifth spot in Test rankings                                              Sindhu leads India's challenge at Hong Kong Open                                              India vs SL: Bhuvi, Dhawan released from team                                              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
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  
Sensex opens in green on value-buying, climbs 164 points  
US dollar ends cheaper against rupee  
Indian companies create 113 K jobs in US: Report  
Largest diamond ever auctioned sold for record $34 mn in Geneva  
Wholesale inflation caps six-month high at 3.59pct for Oct  
SBI reduces employee strength; more people set to retire  
Sensex trades high, takes retail inflation in stride  
Foreign tourist arrivals up by 18.1 pct this Oct  
Sensex extends gains, up 103 pts despite weak IIP data  
 
Do you support reservation for all economically bacward people?
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