After two former RBI Governors Y V Reddy and Bimal Jalan, Nobel Laureate Amartya Sen on Tuesday raised questions on Reserve Bank’s autonomy saying nowadays the central bank does not decide anything and all decisions are taken by Prime Minister Narendra Modi.
Highly critical of the demonetisation, Sen opined that it has failed to eliminate black money though Modi would continue to get the ‘benefit of doubt’.
“People think Prime Minister is doing something to eliminate black momey… Modi will continue to get benefit of doubt… The idea that rich is suffering is appealing to poor people,” Sen told India Today TV in an interview.
On RBI’s decision to ban exchange of scrapped notes after December 30, he said, “I don’t think this is RBI’s decision. This must be Prime Minister’s …I don’t think RBI decides anything at this time.”
Modi in his November 8 address to the nation had said those who could not deposit old notes by December 30 could “go to specified offices of the Reserve Bank of India up to March 31, 2017 and deposit the notes after submitting a declaration form.” Sen further said the RBI was quite independent when Raghuram Rajan was Governor. It was served by illustrious persons like I G Patel and Manmohan Singh.