The demonetisation of Rs 500 and Rs 1000 notes was revealed by RTI query which saw 86 of high-value currency going out of circulation, was announced by Prime Minister Narendra Modi on November 8, 2016.
While the Urjit Patel led RBI board bad met just two-and-a-half hours before Modi’s announcement, the minutes of the meeting were signed by the RBI governor five weeks later on December 15, 2016.
The Indian Express had reported that according to the minutes of the 561st meeting of the RBI’s Central Board, which was convened hurriedly in New Delhi at 5.30 pm on November 6, the central bank’s directors described the move as “commendable” but also warned that demonetisation “will have a short-term negative effect on the GDP for the current year”.
The minutes hardly commended the Centre’s move. However, it did mention that this move will spur people to be part of the digital economy and help to take the process of financial inclusion.
Surprisingly, the minutes did not mention the black money reports by the National Institute of Public Finance and Policy (NIPFP) and two other research institutions, which were appointed by the government to calculate black money.
