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It was govt’s recommendation to RBI, not the other way round: P Chidambaram on demonetisation

He also attacked the government's remonetisation process saying that there was still cash shortage.

By: Express Web Desk | New Delhi |
February 25, 2017 7:12:53 pm
P Chidambaram, Chidambaram, Chidambaram demonetisation, demonetisation, note ban, Chidambaram note ban, india news, latest news, indian express Former Union Finance Minister P Chidambaram. (File Photo)

Raking up the demonetisation issue, senior Congress leader and former finance minister P Chidambaram on Saturday said the scheme instead of being RBI’s recommendation to the government, it was the government’s recommendation to the central bank. He also attacked the government’s remonetisation process saying there was still cash shortage.

“Nearly 2400 crore notes have been withdrawn while printing capacity was 300 crore notes per month. That is why most ATMs are dysfunctional and there’s still cash-shortage,” he added.

Criticising the government over its black money rhetoric, Chidambaram said during elections in Uttar Pradesh and Punjab, crores of black money was seized.

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“Is there no black money in country now? During election Rs 121 crore was seized from Uttar Pradesh and Rs 70 crore from Punjab. Is that white money?” Chidambaram said.

He also criticised the government over the size of the new notes saying that with the demonetisation of Rs 500 and Rs 1000 notes and introduction of Rs 2000 notes, ATMs had to be recalibrated.

He had earlier termed demonetisation as the “biggest scam of 2016” and said the country is likely to grow by 6-6.5 per cent in 2016-17, much lower than what have been predicted by the CSO and RBI, due to the impact of note ban.

On November 8 last year, Prime Minister Narendra Modi announced that notes of Rs 1000 and Rs 500 would no longer be legal tender.

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