Demonetisation was not planned, only proposed, says RBI
RTI on Demonetisation: As per the reports and respond from a RTI enquiry by Hindustan times, the much publicized ban of 8th November was actually just a proposal from the RBI and the Prime Minister Modi announced the ban within hours.
What happened before the announcement of demonetisation?
- The Reserve Bank of India proposed the Ban of Rs 1000 and 500 notes.
- The centre cannot take this decision alone, it needed the RBI Proposal
- The proposal to ban the currency came just 8 hours before the ban.
- The PM went on the TV, in a live coverage on 8th
Actually a preparation was happening from a long time and this was just a formality for moving forward for the Note Ban.
According to the Reserve Bank of India Act, 1934, the central Government have the right to ban the currency, however it can’t do single handily, it can’t take this decision alone. A recommendation has to come from the RBI to implement it. The proposal to ban the currency came just 8 hours before the ban.According to the law, 21 members of the board should be present at the time proposal. Out of which 14 should be independent. The demonetisation preparation was happening from a long time. The bank has already printed 4.94 lakh crore of Rs 2000 notes.