Actor Prakash Raj lies about demonetisation, says Modi govt didn’t seek the advice of RBI

Two days after the Centre knowledgeable the apex courtroom that it had consulted the Reserve Bank of India (RBI) earlier than going ahead with the demonetisation coverage in 2016, actor-turned-activist Prakash Raj on Friday (November 18) tried to insinuate that the Modi authorities had lied to the Supreme Court.

In a tweet, Raj requested, “Dear citizens…Who is telling the Truth?…#justasking” His tweet was accompanied by an image of Prime Minister Narendra Modi and former RBI Governor Raghuram Rajan.

“We did demonetisation after extensive consultation with the Reserve Bank of India,” the actor attributed the assertion to the Union Government. “I was RBI Governor during the time of demonetisation. RBI was not asked to make a single decision on demonetisation,” he attributed one other assertion to Rajan.

Source: Twitter

Prakash Raj tried to recommend that there’s an ‘inherent contradiction’ between the claims made by the previous RBI Governor and the incumbent authorities on the Centre.

For starters, Raghuram Rajan was not the Governor of the Reserve Bank of India on the time of demonetisation. According to the web site of the RBI, Rajan held the place of Governor between September 4, 2013, to September 4, 2016.

On the final day of his tenure, Dr Udit R Patel formally took cost because the RBI’s Governor. As such, it was through the time period of Dr Udit Patel that the Modi authorities rolled out the demonetisation of its ₹500, and ₹1000 foreign money notes on the night time of November 8, 2016.

Modi authorities’s response to SC over demonetisation

In its affidavit to the Supreme Court on Wednesday (November 16), the Union Ministry of Finance stated that demonetisation was carried out in session with the Reserve Bank of India, beginning in February 2016.

It additional emphasised that the coverage to demonetise ₹500 and ₹1000 rupee notes was a “well-considered decision… (taken after) extensive consultation with the Reserve Bank and advance preparation.”

After itemizing the advantages of the train, the Ministry of Finance identified that the session with the RBI and the following decision-making course of was stored confidential by the federal government.

Remarks of Raghuram Rajan concerning the authorities holding the RBI in loop

As said earlier, Raghuram Rajan was not the Governor of the Reserve Bank of India on the time of demonetisation. His time period had ended 2 months previous to the historic occasion i.e. on September 4, 2016.

It is thus clear that RBI, underneath him, was not requested to ‘make a decision’ concerning the coverage (given its implementation in November of that 12 months). The confusion appears to stem from a comment that Rajan made in his 2017 guide ‘I do what I do.’

“At no point during my term was the RBI asked to make a decision on demonetisation,” he had written. However, this line, specifically, is only a small excerpt from his ‘disclosure’ concerning the demonetisation plans.

In September 2017, Raghuram Rajan was quoted as saying, “I used to be requested by the federal government in February 2016 for my view on demonetisation, which I gave orally.

Source: Hindustan Times

“I was asked by the government in February 2016 for my view on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them,” the guide excerpt learn.

“Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them…I made these views known in no uncertain terms,” he had written again then.

It is thus evident that the affidavit submitted by the Union Government within the apex courtroom is consistent with the guide excerpt of Rajan, relationship again to 2017. The Centre had certainly begun consultations with the RBI in February 2016.

During his tenure, the RBI was not tasked to take a call, provided that the nationwide train was rolled out two months after he demitted workplace.

Source: The Hindu

In April 2018, Raghuram Rajan dismissed the allegation that the RBI was not consulted by the Modi authorities previous to the demonetisation. He made the remarks on the Harvard Kennedy School in Cambridge.

“I didn’t ever say that I wasn’t consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn’t think it was a good idea,” he was quoted as saying by PTI.

Prakash Raj defends himself with a cryptic tweet

It should be talked about that RBI is owned by the Government of India and reservations expressed by the Governor will not be binding on the Centre’s policymaking.

Thus, it turns into evident that Prakash Raj quoted Raghuram Rajan out of context to recommend that the Modi authorities unilaterally selected the demonetisation coverage and mislead the apex courtroom.

Screengrab of the tweet by Prakash Raj

After being known as out on social media for peddling disinformation, Prakash Raj instructed that each the Modi authorities and the previous RBI governor had been mendacity about demonetisation.

In a tweet, he claimed, “The answer is both are LIES.” In actuality, it’s the Singham actor who had been quoting the Centre and Rajan out of context to additional his agenda. As he stood uncovered for purveying malicious faux information, Raj tried to salvage himself by claiming that each the items of data in his earlier tweet have been lies, which was one other misinform cowl up his fiasco and promote the deceptive declare that the Centre had no consulted with the RBI earlier than going forward with demonetisation.