'RBI Doesn't Decide Anything, Decisions Taken by Modi', Says Amartya Sen
After two former RBI Governors Y V Reddy and Bimal Jalan, Nobel Laureate Amartya Sen today raised questions on Reserve Bank's autonomy saying now a days the central bank does not decide anything and all decisions are taken by Prime Minister Narendra Modi.
Highly critical of the demonetisation, Sen opined that it has failed to eliminate black money though Modi would continue to get the 'benefit of doubt'.
"People think Prime Minister is doing something to eliminate black momey... Modi will continue to get benefit of doubt... The idea that rich is suffering is appealing to poor people," Sen told India Today TV in an interview.
On RBI's decision to ban exchange of scrapped notes after December 30, he said, "I don't think this is RBI's decision. This must be Prime Minister's ...I don't think RBI decides anything at this time."
Modi in his November 8 address to the nation had said those who could not deposit old notes by December 30 could "go to specified offices of the Reserve Bank of India up to March 31, 2017 and deposit the notes after submitting a declaration form."
Sen further said the RBI was quite independent when Raghuram Rajan was Governor. It was served by illustrious persons like I G Patel and Manmohan Singh.
Earlier, Reddy as well as Jalan had underlined the need for preserving the autonomy of RBI.
As regards the black money, Sen said it was puzzling why the government opted to eliminate tiny 6 per cent black money by demonetising 86 per cent of the currency. Several countries including USA, Japan have lots of cash.
On the government's claim of eliminating fake currency through demonetisation, he said it was never a problem.
"Fake money was never a big problem in India. Fake money problem was not something you want to hold while economy in ransom," the Nobel laureate said.
The demonetisation decision was taken by small group of people, he said, adding state governments should have been consulted as India has a federal polity.
The government in a surprise move demonetised Rs 500 and Rs 1,000 notes, which constituted 86 per cent of the currency, from midnight of November 8.
- K.P.S. Gill, Who Killed Terrorism In Punjab, Dies
- K.P.S. Gill: The Man Who Won The Terror Battle In Punjab
- K.P.S. Gill Ruled Indian Hockey With An Iron Fist
- Wonderful, Precise And Very Cool: How Do Our Money Up-Chucking Machines Work?
- "I'm Only Passing Through" 10 Leonard Cohen Songs That You Must Listen To
- Blackout For NDTV Stirs The Media
- Daily Curator: The Dominion Of Misunderstood Men Over Headlines
- Daily Curator: Of Holes Being Poked Into The Bhopal Encounter And The Origins Of Chyawanprash
- Watch: Viral Video Has Man Lighting Up A Line Of Crackers Attached To His Mouth
- MOST VIEWED
- MOST COMMENTED
- What Exactly Is The Govt Celebrating? Rahul Questions 'Modi's Three Year' Festivities
- IT Dept Raids 22 Locations In Benami Land Deal Case Linked To Lalu Prasad Yadav
- Mamata Banerjee Discusses Joint Candidate for President Polls with Sonia Gandhi
- Petrol Price Cut By Rs 2.16 per Litre, Diesel By Rs 2.10