You are here: Home » Economy & Policy » News » Demonetisation
Business Standard

Demonetisation came at a huge cost for Indian economy, says Raghuram Rajan

He also added that the GDP and informal economy have both suffered due to note ban

ANI  |  New Delhi 

Reserve Bank of India Governor Raghuram Rajan during an interactive session organised by Assocham in Bengaluru
Former Reserve Bank of India Governor Raghuram Rajan during an interactive session organised by Assocham in Bengaluru

Former Reserve Bank of Governor on Thursday spoke to various news channels and talked about various issues like after releasing his book 'I Do What I Do'.

He said that has come at a huge cost for the and it can have a chilling impact on

"The RBI's concern that costs of will outweigh benefits was conveyed to the government. offered an opinion on alternative approaches to note ban," said.

He further added that the prepared an informal note on this.

"A committee was set up and started the process of discussion. In my view, it never came back to us that here is a decision that you've to make or here's the timing we want to do this scheme," said

He also added that the and informal economy have both suffered due to and hasn't been able to identify hoarders.

The had started the process of designing new notes and the new notes - 2000, 500 and a new 1,000 - had been approved in May. To say none (of notes ban prep) was done would be incorrect. But, a monetary economist would've liked for all the notes to replaced at one go."

He also said that no date was fixed for and still the entire data on is not available.

"No date was fixed for impact can't be accurately measured as we still don't have entire data to talk on "

He, however, said that cost of was 1-2 per cent of the

"Let's say if there is loss of 1.5% then it is Rs. 2 lakh crore plus amount," former governor said.

Talking about the relation between and finance ministry, said that tension between and Finance Ministry has always been there.

He also talked about his departure from the and said that "I never resigned, my term just ended".

The government did not offer me a new contract and that's where it ended, he said.

Talking about Aadhaar, said "I like the process of getting everybody to sign on to their accounts with the number".

He also praised Right to Privacy judgement passed by the Supreme Court and said, "We are open, tolerant society open to different viewpoints. Right to Privacy judgement is a proof of this."

Replying a question about criticism, the former governor said, "In these jobs, you get lot of criticism but if you pay attention to criticism then you can't do anything."

On question that if a farmer defaults tractor loan then he is caught but big can't be touched, said this should be changed.

Replying a hypothetical question, the former governor said, "If I am Finance Minister then I will do three things: Will develop infrastructure, will fix power problem and push

First Published: Thu, September 07 2017. 22:52 IST