‘The RBI stands diminished after demonetisation’

‘The RBI stands diminished after demonetisation’: Former finance minister P Chidambaram says the Modi government virtually directed the central bank to accept its hasty suggestion to ban high-value notes...

Online comments published:
"It'll be interesting reading, if someone compiled Dr Raghuram Rajan's exit(from RBI) stories. Subramanian Swamy first claimed credit for sacking Rajan on various grounds. When he originally took on Rajan, Swamy had a veteran substitute to suggest, Dr Vaidyanathan. Now PC says the exit was due to difference of views on demonetization. Rajan had in fact come on three years leave from Chicago and after completing the contract period, now he is back in Chicago. Many are trying to add value to their statements by taking Dr Rajan's name!"
M G Warrier

In my article on RBI Governor Raghuram Rajan published in The Global ANALYST(September 2013 issue) I had expressed my apprehension that Chidambaram was likely to be seco nd time unlucky by having Dr Rajan as Governor. He had earlier 'selected' Duvvuri Subbarao after short chats with Rakesh Mohan and Subbarao separately on an evening at his Delhi residence. In the interview he found Subbarao 'amenable'. To PC's dismay, Subbarao slowly became an 'RBI man' once he started working from Mint road. Subbarao's book "Who moved my interest rate?" gives detailed accounts of PC's great expectations from RBI, which were not met adequately. PC has a sharp memory which is a burden for him as age is progressing!

M G Warrier


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