PM Narendra Modi Went Ahead With Demonetisation Before RBI's Formal Approval, RTI Reveals
The demonetisation of Rs 500 and Rs 1,000 notes, which saw 86 per cent of high-value currency going out of circulation, was announced by Prime Minister Narendra Modi on November 8, 2016, even before formal approval by the RBI central board, an
An RTI query revealed the demonetisation of Rs 500 and Rs 1,000 notes, which saw 86 per cent of high-value currency going out of circulation, was announced by Prime Minister Narendra Modi on November 8, 2016, even before formal approval by the RBI central board, as reported by the Indian Express.
While the Urjit Patel-led RBI board had met just two-and-a-half hours before PM Modi¡¯s announcement, the minutes of the meeting were signed by the RBI governor five weeks later on December 15, 2016.
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Last year, the Indian Express had reported that according to the minutes of the 561st meeting of the RBI¡¯s Central Board, which was convened hurriedly in New Delhi at 5.30 pm on November 6, the central bank¡¯s directors described the move as ¡°commendable¡± but also warned that demonetisation ¡°will have a short-term negative effect on the GDP for the current year¡±.
