Absolutely arbitrary

Absolutely arbitrary: This refers to ‘You have only one chance to deposit scrapped notes worth over ₹5,000’ (December 20). By and large, citizens have accepted the measures undertaken by the Government and the RBI in deference to the broader...

This refers to ‘You have only one chance to deposit scrapped notes worth over ₹5,000’* (December 20). By and large, citizens have accepted the measures undertaken by the Government and the RBI in deference to the broader objectives of fighting corruption, black money and fake currency in the system. The instructions now issued, restricting deposits to just once, giving discretion to bank officials to accept or reject deposits of SBNs and re-routing such deposits compulsorily to deposits under the Taxation and Investment Regime for the PMGKY, smacks of arbitrariness. If someone alleges that the RBI is acting under ‘instruction’ from the Centre to ‘promote’ fund-raising, the allegation may stick.
Such a casual approach to currency management can impair the public trust not only in the central bank but in the banking system, and this can have long-term implications for the economy.
MG Warrier
Mumbai

*The disputed instructions contained in RBI circular dated December 19, 2016 were withdrawn by RBI through another circular on December 21, 2016.

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