Demonetisation is worst catastrophe in India's financial history: Kerala Governor Sathasivam

He slammed the Centre's move as an "ill-conceived decision".

Demonetisation is worst catastrophe in India

Kerala Governor P Sathasivam has termed demonetisation by the Centre as one of the most devastating catastrophes in India's financial history.

The Governor's comment came at the opening address in the first assembly session of the year on Thursday.

"On November 8, 2016, the government came out with a wildly impulsive version of demonetisation that simply and selectively took Rs. 500 and Rs. 1,000 notes out of circulation," he said, describing the plight of the masses in the last four months.

Criticising the Centre for not putting in place a system to replace the scrapped currency, he called the measure "ostensibly" put and "bandied about as a means to flush out black money in circulation".

Continuing his attack on the Narendra Modi government's move, Sathasivam called the curbs put on money withdrawals over Rs. 24,000 per week from bank accounts as "draconian".

He said the rights that were safeguarded by the Constitution were thrown to the winds through a mere executive fiat overnight.

A former Chief Justice of the Supreme Court, Sathasivam, also pointed out that 86 percent of the money in circulation was sucked out in the process.

"The Reserve Bank of India that has to function as our independent monetary authority was also compelled to be a silent partner acquiescing to this travesty," the Governor added.

He slammed the Centre's move as an "ill-conceived decision".