Demonetisation was a ‘well-considered decision’ taken in consultation with RBI, Centre tells SC https://scroll.in/latest/1037631/demonetisation-was-well-considered-decision-taken-in-consultation-with-rbi-centre-tells-sc Nov 17, 2022
The move reduced fake notes in the system, encouraged digital transactions and boosted economic growth, the government claimed.
Scroll Staff..
The government also urged the Constitutional bench to not be persuaded further regarding the legality of the exercise.
“The Supreme Court has generally refrained from judicial review of decisions in the realm of economic policies,”
· 11:41 am in a separate affidavit, the Reserve Bank of India said that the inconvenience caused to the public cannot be a ground to challenge the validity of demonetisation as it was taken in national economic interest, the Hindustan Times reported.
https://www.livemint.com/industry/banking/rbi-warned-of-demonetisation-impact-on-indian-economy-no-effect-on-black-money-1552309636104.html The board of the Reserve Bank of India (RBI), which included the present governor Shaktikanta Das as a director, had warned of short-term negative impact of demonetisation on Indian economy and observed that the unprecedented move will not have any material impact on tackling black money. The board, according to minutes of a meeting disclosed by RBI in an RTI reply, had met just two-and-a-half hours before Prime Minister Narendra Modi announced the demonetisation decision on 8 November 2016..."Most of the black money is held not in the form of cash but in the form of real sector assets such as gold or real estate and that this move would not have a material impact on those assets," the board observed in its 561st meeting held in Delhi.
https://www.hindustantimes.com/cities/delhi-news/govt-rbi-defend-demonetisation-in-affidavits-filed-before-top-court-101668623343303.html
The nation underwent an important transformation through a series of economic policies and events, and withdrawal of the legal tender character was one important action in that series. The reform agenda of transforming the nation through a series of economic policies and changes were intended to strengthen the formal economy and nudge large sections of the informal economy to become part of the formal economy and reap its benefits,” it added.
According to the Centre, “the withdrawal of the legal tender character was one of the significant steps in the enhanced formalisation of the economy with the aim of expanding opportunities for the millions living on the periphery of the economy.”
When consulted, RBI had warned Centre demonetisation wasn’t a good idea, says Raghuram Rajan https://scroll.in/latest/875457/when-consulted-rbi-had-warned-centre-demonetisation-wasnt-a-good-idea-says-raghuram-rajan Apr 12, 2018
Former Reserve Bank of India Governor Raghuram Rajan on Wednesday clarified that he never said the government had not consulted the central bank before demonetising Rs 500 and Rs 1,000 notes on November 8, 2016. Rajan said the RBI had, indeed, been consulted and had made it clear that scrapping 87.5% of the currency in circulation was “not a good idea”, Mint reported.
“I did not ever say that I was not consulted [on demonetisation],” he said at Harvard Kennedy School in Cambridge. “In fact, I have made it quite clear that we were consulted and we did not think it was a good idea.”
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Rajan said demonetisation “was not a well-planned,