RBI had contradicted Government claims of catching black money with the help of Demonetisation. This revelation is made with the help of RBI’s Minutes of Meeting. There has been a controversy on who all are involved in Demonetisation decision since it was announced.
There had been merely guesses on what all were the involvements of RBI in this decision. However, RBI’s Minutes of Meeting has cleared its stand on demonetisation. According to it RBI had disapproved of government claims on black money. Also, it had expressed concerns over its negative impact on GDP.
Finance Ministry had informed board that there are only 400 crore money as fake currency in 500 and 1000 rupee notes. RBI had said that its concerned about fake notes. However, 400 crore rupee is not a very big reason to worry about. There is a list of suggestions given by Finance ministry in ‘Minutes of Meeting’.
Finance Ministry had kept forth the matter on Black money in front of Board of Directors of RBI. This has been registered in Board’s Minutes as : ‘Maximum amount of black money is not in the form of cash. It is in the form of Real estate or Gold. There will be no impact on them due to demonetisation.’
The question is why didn’t Prime Minister mentioned these arguments in his speech on demonetisation. Instead, he went on linking the decision with ‘control over black money’.
It is to note that RBI’s board of directors 561th meeting was organized on 8th November 2016. This was done in a hurry to discuss on demonetisation. The above revelation is of this meeting only.