Former SBI chief Pratip Chaudhuri says RBI is lying about cash situation
Chaudhuri said the cash situation will not become normal at least for the next three months
Former State Bank of India Chairman Pratip Chaudhuri has alleged that Reserve Bank of India has been “lying on the face” to the public about the current cash situation in the country.
In an interview to Firstpost, the ex-SBI chief said the RBI should have been more transparent about the whole process of demonetisation that announced by Prime Minister Narendra Modi on November 8.
“If there is a problem, you should share it and come clean,” Chaudhury said, instead of ‘running away and hiding,” Chaudhuri was quoted by the news website.
He also added that the cash situation will not become normal at least for the next three months and this will affect the economy of the country as consumption story has been hit badly in India.
Reacting to the RBI’s assurance to the public that there is enough cash, Chaudhuri said: “If they have enough cash, there are 2 lakh ATMs in this country. What prevents them from putting one crore rupees in each of these ATMs and saying you draw Rs 5,000 or Rs 10,000? The crowds will diminish.”
Meanwhile, commenting on the entire demonetization process, he said that pulling out 86 percent currency was not the solution (to check black money).
“It was a bad idea. Demonetisation exercise couldn’t have been used to unearth black money. Note ban was partially successful in checking fake currency, but not black money. But, no country does it in this way,” he added.
There is no doubt that the government failed to assess the effectiveness of note ban as a measure to achieve the stated objectives, he said in the interview.