1. Ex-RBI deputy governor questions government’s move on demonetisation

Ex-RBI deputy governor questions government’s move on demonetisation

Former RBI governor KC Chakraborty on Thursday said that there was no economic move on monetisation on the government’s move on demonetisation.

By: | New Delhi | Published: November 17, 2016 2:31 PM
KC Chakraborty adds that there is no data to prove what percentage of black money exist in the system. (CNBC-TV 18) KC Chakraborty adds that there is no data to prove what percentage of black money exist in the system. (CNBC-TV 18)

Former RBI governor KC Chakraborty on Thursday said that there was no economic move on monetisation on the government’s move on demonetisation. He added that the move by the government on November 8 cannot be termed demonetisation. Speaking to CNBC-TV 18, Chakraborty said there was no economic basis for the move, whose objective is also questionable.

He added that there was no data to prove what percentage of black money exist in the system. The ex-deputy governor further said that the black money accounts for big percentage in illiquid forms like realty and bullion sectors.

Stressing that banning of entire cache of Rs 500 qnd Rs 1,000 would making little sense, Chakrobarty said the move seemed to have an underlying political rationale.

Since the demonetisation step by the government on November 8 on high value notes of Rs 500 and Rs 1,000, the citizens have been standing in long queues to get their turn to exchange banned notes or deposit their amounts. The Narendra Modi led government has given time till December 30 for the countrymen to deposit their cash. It had also announced that action could be taken against those found to have black money, especially those having undeclared amount of more than Rs 2,50,000.

For last nine days people are trying to get cash. However, most of them continue to try their luck but without success.

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    CA Rajesh
    Nov 20, 2016 at 10:44 am
    What he said may be somewhat relevant, but, this is the first step and will prove to be well considered step in combination of other steps in process like control over Benjamin property, gold, cash holding limit, emphasis on non cash transactions. I as CA strongly appreciate the move.
    Reply
    1. B
      Bharat
      Nov 18, 2016 at 7:42 am
      Mr. Chakraborty is an eminent economist, worked as commercial banker and reached at highest position in Bank of Baroda and finally appointed as Dy. Governor with regulator with RBI: whatever he saying that makes sense. He has hand-on-experience in all three dimensions as economist, as banker and as regulator.
      Reply
      1. S
        Sanjay
        Nov 17, 2016 at 11:41 am
        Mr Chakraborty has never been Governor of RBI. It is mentioned twice in the article.
        Reply

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