RBI cautioned govt of short-term costs of the move: Former RBI Governor Raghuram Rajan

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Mumbai: Past Reserve Bank of India (RBI) Governor Raghuram Rajan on Sunday cautioned administration that short-term cost ban of high-valued currency notes (rupee) would overshadow the long-term reimbursement.

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Rajan former his advice on whether to ban currency notes in February 2016. That was months prior Prime Minister Narendra Modi astounded the nation on 8 November by stopping 500 and 1,000-rupee notes, eliminating 86 percent of the currency in circulation in a bid to crack down on “shadow economy”.

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He further conveyed that the RBI pennon what happen if arrangement was insufficient. He further added that the intent was high-quality. But surely at this time, one still cannot in any way regard it has been a financial victory.

On Wednesday RBI further stated in an annual report that the estimated 15.4 trillion rupees in high-currency bills detached from nation previous year come back to the organization.

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Modi had been planning to make it troublesome for hoarders of undeclared riches to trade their undeclared money for legitimate delicate, however it appears to be a large portion of it was returned by people, inferring there was a little measure of unaccounted cash held in real money or dodgers had figured out how to authorize their unaccounted cash.

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