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LATEST NEWS UPDATES | RBI was consulted on demonetisation, says Centre

RBI was consulted on demonetisation, says Centre

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published Published on Nov 17, 2022   modified Modified on Nov 17, 2022

-The Telegraph

Decision was kept closely guarded to root out the menace of black money, money laundering, tax evasion and other illegal activities: Modi government

The Centre on Wednesday defended the 2016 demonetisation policy, saying “the withdrawal of the legal tender character of a significant portion of total currency value was a well-considered decision” taken after extensive consultations with the RBI.

The decision was kept closely guarded to root out the menace of black money, money laundering, tax evasion and other illegal activities, the Narendra Modi government said in an affidavit filed on Wednesday evening in the Supreme Court.

The Union finance ministry has pleaded that a five-judge constitution bench desist from scrutinising a purely “economic policy” and cited the apex court’s earlier decisions that courts should not interfere with the fiscal policies of the government.

The affidavit has been filed in response to the bench’s recent directive to file one justifying the demonetisation.

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The Telegraph, 17 November, 2022, https://www.telegraphindia.com/india/rbi-was-consulted-on-demonetisation-says-centre/cid/1898514


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