Contact Your Financial Adviser Money Making MC
7 February
2017
 |
| Apagariya (The Total Investment & Insurance Solutions) |
In
implementing demonetisation what did not go as planned was that "a lot of
bank officials really played it in the way that they should not have played
it" and it was on a scale not anticipated, according to Arvind Panagariya,
Vice Chairman of Niti Aayog. The Total
Investment & Insurance Solutions
He
defended the demonetisation of the Rs 1,000 and Rs 500 notes calling them a
part of an overall strategy to fight black money and to introduce developments
like digitisation of currency.
"Remember
this was not a step taken in isolation," he said. "It sent a very
strong signal, 'Look the government's strategy is to combat the black
money'."
He
was answering students' questions after a lecture on India's economic policy
and performance organised by the Deepak and Neera Raj Centre on Indian economic
policies at Columbia University's School of International and Public Affairs.
"It
is a gigantic operation," he said. "Those who have been critical of
the RBI have not understood what a gigantic task it was to remonetise the
economy.
"The
money that was completely out of the system, a substantial part of the cash
that was in circulation was not in circulation, was not in the formal
economy," he said.
"A
lot of these the RBI (Reserve Bank of India) knew was not coming through the
banking system at all. So they all needed to come back. The Total Investment & Insurance Solutions
"Demonetisation
sends a very, very strong signal that the day when the central government was
complacent was over, that if you are going to misbehave we are going to see to
it that you pay for it," he added. The
Total Investment & Insurance Solutions
The
demonestisation is being followed up by a number of other things like
restrictions on contributing funds for elections, and "the digitsation of
the transactions, big time," Panagariya said. "So all in all it was a
necessary step in the process."
He
also praised the RBI for the "admirable role" it paid in keeping the
rupee stable in November through two international developments - Brexit and
the election of Donald Trump as the US President - that made an adverse impact
on most developing country economies.The Total
Investment & Insurance Solutions
No comments:
Post a Comment