RBI refuses to give facts, mentions threat to life

RBI has refused to share specific details on the govt’s choice to recall high-value banknotes, citing threat to the country’s sovereignty, integrity and security besides danger to life, Bloomberg News reported.

The statement comes amid contradictory claims by the RBI and the Govt that the decision to ban Rs 500 and Rs 1000 notes was taken by the other.

PM Modi said the demonetisation on November 8, a decision that sucked out 86% of the currency notes in circulation and left millions lining up at banks and ATMs for cash.

The govt has come under stinging criticism from the opposition for allegedly taking the choice without preparing for the cash crunch that followed. The government has defended the move as an attack on illicit cash and counterfeiting.

The govt told parliament in November the choice to withdraw the 500 and 1000-rupee banknotes was taken by the RBI.

On the hand RBI told a parliamentary panel it was the govt which advised it on November 7 to go for demonetization.