The lastest exposure that Prime Minister Narendra Modi had practically ignored Reserve Bank of India (RBI) advise against demonetisation seems to be turning into an affective poll arm for the opposition. The minutes of the RBI Board Meeting, held just two and half hours ahead of Prime Minister announcing the decision, had warned the government that such an attempt will affect economic growth, besides will not help in any way to check black money.
The minutes of the RBI Board meeting were obtained by RTC activist Venkatesh Nayak. Taking clue from this, senior Congress leader Jairam Ramesh said that if his party voted to power, it will probe the post-note ban deposits in tax havens and Indian banks, including a Gujarat bank with BJP President Amit Shah as its director which had netted a very high amount of money.
Citing the minutes of the RBI’s central board, the former union minister said the government imposed demonetisation on the RBI and termed it a “huge money lacquering scheme”. “The fact that the directors were not convinced by the objectives which the government sought to achieve, particularly the impact on black money and counterfeit notes, proves that the demonetisation decision was imposed on the RBI which ultimately devastated the Indian economy,” he added.
According to the minutes, the directors observed: “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.”