Rs. 1000, 500 notes proposed hour before telecast of PM’s speech: RBI

TIL Desk/National/New Delhi-RBI says ban on Rs 1000, 500 notes proposed hours before telecast of PM’s speech. The Reserve Bank of India (RBI) recommended #demonetisation of #500- and #1000-rupee banknotes hours before Prime Minister #NarendraModi announced the surprise move in a televised address to the nation in the evening of #November8. Economic affairs secretary Shaktikanta Das told reporters on November 8 that there was “no need to go into the process which led to this decision. I think what we should be focusing on is the outcome and the decision itself”.

The government’s shock move has led to a severe cash crunch, forcing millions of people to line up at banks and ATM kiosks for more than a month. Cash withdrawals have been restricted, but most banks are unable to provide even that. The Opposition’s protests over the demonetisation move have washed out the winter session of Parliament.

#TheReserveBankofIndia Act, 1934, empowers the Union government to demonetise any series of banknotes. The government, however, cannot take this decision on its own, but only on the recommendation of the RBI’s central board. In response to a right to information request, which Hindustan Times has sought, the RBI said the bank’s central board of directors made the recommendation at its meeting in New Delhi on November 8. Only eight of the 10 board members attended the crucial meet.