The Reserve Bank of India (RBI) in its reply to the Parliament panel on demonetization has said the decision to ban Rs 500 and Rs 1000 notes was a joint decision between the central bank and the government.
In details available exclusively with India Today TV, the RBI also said it considered printing Rs 5000 and Rs 10,000 notes.
HERE ARE THE 10 BIG REVELATIONS
- RBI says demonetization of high-value notes was a ‘joint decision’ between the government and the central bank.
- Demonetization’s primary objective was to crack down on counterfeit notes.
- RBI mooted introducing 5000 & 10,000 rupee notes as early as October, 2014 – a few months after Modi came to power.
- RBI said the Rs 2000 note was chosen in view of the inflation and to manage currency logistics.
- On why Rs 2000 note was not introduced in a phased manner, the RBI said the new design will ‘catch the fancy of the public’.
- Asked when the printing of new currency notes started, the bank said: June 2016.
- On what led to the final decision on demonetization, the RBI said new currency had reached critical minimum stock.
- The RBI said it had weighed in the cash crisis and understood that it might not be possible to replace notes fully.
- The RBI considered digital payment option to take a part of the cash crunch load.
- The RBI claims demonetization had no impact on its balance sheet.