Shame on RBI which ‘recommended’ demonetisation: Chidambaram

  |   India News

Former finance minister P Chidambaram censured the Reserve Bank for ‘recommending’ the demonetisation move that resulted in 98.6% of the withdrawn currency coming back into the system.

“Rs 16000 cr out of demonetised notes of Rs 1544,000 cr did not come back to RBI. That is 1%. Shame on RBI which ‘recommended’ demonetisation,” Chidambaram said in a tweet.

The annual report of the central bank further said that the cost of printing of currency notes more than doubled to Rs 7,965 crore in 2016-17 from Rs 3,421 crore in the previous year on account of new currency printing.

“RBI ‘gained’ Rs 16000 crore, but ‘lost’ Rs 21000 crore in printing new notes! The economists deserve Nobel Prize,” Chidambaram wrote. He also asked whether the move to demonetise 86 per cent of the currency in circulation was ‘a scheme designed to convert black money into white?’

Chidambaram, a senior leader of the Congress party, had said in the past that demonetisation was the ‘biggest scam’ of 2016 and that it dealt a serious blow to the economy.

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