Promise to pay

Promise to pay: Usha Thorat’s article, ‘The dream of a cashless society’ (November 14) lucidly explains several interesting aspects of demonetisation and its impact at various levels of the economy. As rightly pointed out, the action...

Promise to pay
Usha Thorat’s article, ‘The dream of a cashless society’ (BL, November 14) lucidly explains several interesting aspects of demonetisation and its impact at various levels of the economy. As rightly pointed out, the action does not impact the RBI’s promise to pay ‘value’ or the sovereign guarantee printed on the currency note. Therefore, legally, it would be wrong to make any adjustment in the RBI’s balance sheet with reference to the quantum of notes surrendered. Such adhocism in accounting practices can lead to erosion of trust in the RBI.

As regards acceptance of ‘demonetized’ currency in public transactions, perhaps it is a misconceptionand needs to be clarified. Extended time limits for certain essential services relate to accountable transactions.

MG Warrier

Mumbai

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