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Demonetisation, brainchild of Modi government: RBI



New Delhi, January 10: The awe and shock of demonetisation, continues. The Shock therapy used by Prime Minister Narendra Modi on November 8 turns out to be a brainchild of the Central government. For, RBI was advised about the noteban by the Modi government on November 7, 2016, just a day ahead of final demonetisation announcement by PM, reported Indian Express on Tuesday.

The report also cites a seven-page reply submitted by RBI on December 22 to the Parliamentary Panel on finance headed by Veerappa Moily of the Congress.

Reportedly, RBI to the panel said: Government, on 7th November, 2016, advised the Reserve Bank that to mitigate the triple problems of counterfeiting, terrorist financing and black money, the Central Board of the Reserve Bank may consider withdrawal of the legal tender status of the notes in high denominations of Rs 500 and Rs 1,000.  

Read More: Government has virtually taken over RBI’s functions

Read More: Parliamentary panel questions Urjit Patel over demonetization

Earlier, Union Power Minister Piyush Goyal had said in the Rajya Sabha on November 16 that the decision of demonetisation was taken by the RBI board as it is responsible for running nation’s monetary policy.

In a reply to an RTI query filed by Indian Express, it is found that the proposal to print Rs 2000 notes was passed in May 2016 and printing for the same was started from June 2016. However, there was no discussion with RBI on the possibility of demonetisation in previous meetings of May, July or August. Only on November 7 Modi government advised the RBI for the noteban of 86 % of currency.

In its note to panel RBI also cited “urgency” within the government to scrap the old notes out of the system. The government had advised RBI to place this matter before the directors of its Central Board for consideration immediately.

Read More: RBI and govt at loggerheads over demonetisation implementation

Read More: Steve Forbes: India’s demonetisation is immoral, sickening and dreadful

The very next day RBI’s Central Board met to deliberate “government’s advice” on withdrawing the legal tender status of the Rs 500 and Rs 1,000 notes. Cutting the long story short, PM Modi announced it on the same evening.

Since November 8 Modi government and RBI has denied several RTI’s regarding currency ban, citing it as a matter of high secrecy for national concern. But it is time the secrecy surmounting the decision of demonetisation decision is made public.

RBI governor Urjit Patel is set to meet Parliamentary Panel (PAC) next week and reply why and how the decision of note-ban was taken. If the PAC is dissatisfied of the governor’s reply it can also summon PM Narendra Modi for the same.

Earlier, former prime minister Manmohan Singh had asked in the parliamentary meet if the Reserve Bank of India was given enough time to think over the demonetisation proposal. The very next day RBI had said that the decision was take in the RBI Board’s meet before the PM’s TV address to the nation.

Read More: Demonetisation: Farmers dump their produce after fall in prices 

Read More: Demonetisation: 50 mn livelihoods at risk as tourists stay away

Wefornews Bureau



Jammu and Kashmir: Minor injured in clashes in Baramulla district




Srinagar, May 20 : A nine-year-old boy was seriously injured during clashes between a group of youth and security forces in Jammu and Kashmir’s Baramulla district, police said on Sunday.

According to the police, Rizwan Ahmad was injured in Arampora in Sopore late on Saturday when a Central Reserve Police Force (CRPF) vehicle was attacked with stones by a group of youth.

Doctors treating the injured minor said he had been hit by a rubber bullet in his head.

“He was referred to SKIMS in Srinagar for specialised treatment”, doctors said.

The police said they have registered a case in this incident.

The Centre had on Wednesday announced a ceasefire in the troubled state, asking security forces to halt their operations during the Ramzan to help “peace-loving Muslims” observe the holy month in a peaceful environment.

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Kathua rape -murder: BJP MLA Lal Singh leads march demanding CBI probe



srinagar-protest Kathua rape

Jammu, May 20 : Former state minister and senior Bharatiya Janata Party (BJP) leader Choudhary lal Singh on Sunday led a march in Jammu and Kashmir’s Kathua district, seeking CBI probe into Kathua rape and murder case.

Lal Singh walked barefoot for nearly five hours after which his supporters urged him to get into a vehicle as he developed blisters in his feet.

The march was organised to mount pressure on the state government to have the Kathua rape and murder case investigated by the Central Bureau of Investigation (CBI).

lal Singh and another senior BJP leader Chander Prakash Ganga resigned from the state cabinet following their participation in a rally organised by Hindu Ekta Manch in Hiranagar area in January this year.

The State Crime Branch has already filed a charge sheet against eight accused in the rape and murder of an 8-year-old in Rasana village of Kathua district.

On the plea of the victim’s father, the Supreme Court has ordered that the trial of this case be held on a daily basis without any adjournment in Pathankot town of neighbouring Punjab.

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Petrol, diesel in Delhi hit record highs




New Delhi, May 20: Petrol, diesel in State-run Indian Oil Corp on Sunday raised transport fuel to record highs in Delhi on the seventh day of resuming the daily price change system, following a temporary suspension that lasted 20 days.

The price of petrol in Delhi touched a record high of Rs 76.24 per litre under the dynamic pricing regime beating the previous high of Rs 76.06 in the city on September 14, 2013.

Sunday’s hike of 33 paise over the previous day was the highest since dynamic pricing resumed after the suspension, coinciding with the Karnataka elections.

Diesel in the national capital on Sunday went to its highest level of Rs 67.57 per litre.

Petrol prices climbed to new multi-year highs in other major metro cities too — Kolkata, Mumbai and Chennai — at Rs 78.91, Rs 84.07 and Rs 79.13 per litre respectively.

Diesel prices also touched record high levels on Sunday in Kolkata, Mumbai and Chennai. They rose to Rs 70.12, Rs 71.94 and Rs 71.32 per litre respectively.

The price of the Indian basket of crude oils, composed of 70 per cent sour grade Oman and Dubai crudes and the rest by sweet grade Brent, has gone upwards of $70 a barrel this month, after rising to an average of $69.30 in April 2018.

It averaged $47.56 and $56.43 per barrel respectively during the last two financial years.

During a telephonic interaction earlier this week with Saudi Arabian Minister of Energy, Industry and Mineral Resources Khalid Al-Falih, Petroleum Minister Dharmendra Pradhan raised concern over the surge in crude oil prices.

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