Raghuram Rajan: The government did not offer me a new contract

After releasing his book I Do What I Do, Raghuram Rajan the former Reserve Bank of India Governor talked about various issues like demonetisation.

Rajan, who ended his three-year term as RBI Governor on September 4, last year said that demonetisation has come at a huge cost to Indian economy and it can have a chilling impact on Indian economy.

To which he added, “The RBI’s concern that costs of demonetisation will outweigh benefits was conveyed to the government. RBI offered an opinion on alternative approaches to note ban.”

Then he later added where he stated, “A committee was set up and started the process of discussion. In my view, it never came back to us that there is a decision that you’ve to make or here’s the timing we want to do this scheme.”

He also added that the GDP and informal economy have both suffered due to note ban and demonetisation haven’t been able to identify black money hoarders.

The RBI had started the process of designing new notes and the new notes – 2000, 500 and a new 1,000 – had been approved in May. To say none (of notes ban prep) was done would be incorrect. But, a monetary economist would’ve liked for all the notes to replace at one go.”

He also said that no date was fixed for demonetisation and still the entire data on demonetisation is not available. “No date was fixed for demonetisation. Note ban impact can’t be accurately measured as we still don’t have entire data to talk on demonetisation.”

He also talked about his departure from the RBI and said that “I never resigned, my term just ended”. The government did not offer me a new contract and that’s where it ended, he said.

Talking about Aadhaar, Rajan said, “I like the process of getting everybody to sign on to their accounts with the Aadhaar number”.

He also praised Right to Privacy judgement passed by the Supreme Court and said, “We are open, tolerant society open to different viewpoints. Right to Privacy judgement is a proof of this.”

Replying a question about criticism, the former RBI governor said, “In these jobs, you get a lot of criticism but if you pay attention to criticism then you can’t do anything.”