MONUMENTAL MISMANAGEMENT: CREDIBILITY OF RBI LOST FOREVER?

Under Rajan, RBI adopted Consumer Price Index (CPI) as an important indicator of inflation, despite the government’s opposition.RaghuramRajan, has been conferred with the Central Banker of the Year award for the year 2016.As the Governor of RBI, he successfully brought down retail inflation from 9.8 percent in 2013 to 3.78 percent in 2015.he says I would focus more on tracking data and better tax administration to get at where money is not being declared.

97% banned notes said to be deposited in banks. Banks have received Rs14.97 trillion ($220 billion) as of 30 December, the deadline for handing in the banned notes.

YV Reddy, BimalJalan (two former governors of RBI) stoke debate on steady erosion of RBI autonomy. If I Were at RBI, I’d Have Withdrawn From Demonetisation Implementation: Y.V. Reddy. Currency in circulation contracted by 4.3% in the week to 6 January, indicating that the introduction of new notes has been Slow.

RBI admits Government called the shots on demonetisation.RBI approved Modi’s demonetisation bid hours before his announcement.In response to an RTI query, RBI said information on how many members favoured or opposed Modi’s demonetisation move isn’t ‘on record’.Were Jaitley, economic advisor consulted before demonetisation? RBI does not answer the RTI query. The Reserve Bank of India has refused to answer a query seeking information about the pre-demonetisation consultation process bracketing an RTI petition as under ‘seeking opinion category’. System not yet ready for cashless economy, RBI Governor tells PAC.RBI is reconciling the numbers provided by banks against the actual cash stashed in currency chests. Cooking up the fiscal deficit numbers : Growth deficit and the fiscal deficit. The budget is likely to overestimate the expected revenue and the absolute level of the permissible fiscal deficit.

An ATM at a village in (Khargone district) dispensed two ‘one-side blank’ currency of the new Rs 500 denomination. MP farmers get ‘genuine’ Rs 2000 The image of Mahatma Gandhi was missing from the notes because of a “printing error”, the farmers were told. Banking and police sources told that many such defective, yet genuine, currency notes were in circulation . Government’s own agencies estimated the quantity of FICN as Only 0.02% of the currency in circulation is fake currency.

Only 2304 billion worth new currency is printed between 8/11/16 & 13/01/17 (66 days).Find how much time needed for balance 8189 billion?.no additional security feature is added to the new notes than what is existing.

RBI: WILL LOSS OF FACE BE RECOVERED BY LOSS OF HEAD?
“The RBI has lost a good deal of its most prized asset — credibility. What is a holder of a rupee supposed to think of the worth of the RBI governor’s promise to pay the bearer a promised sum on presentation at anyplace where such notes are meant to be exchanged? Clearly the RBI governor has lost face and the institution has had its credibility whittled down.”

Ref :Many Articles

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