Revealing details on note ban dangerous to life: RBI

Mumbai: The Reserve Bank of India (RBI) has refused to answer an RTI query requesting details about the number of demonetised notes at banks on the evening of November 8, the day Prime Minister Narendra Modi announced a ban on currency of Rs 500 and Rs 1000.

Responding to an RTI query, the RBI claimed an exemption, citing danger to the life or physical safety of anyone who disclosed this information to the public.

The RBI also refused to divulge details on its preparations for demonetisation and studies it used to forecast the impact of the move, claiming that revealing information on these ‘sensitive matters’ would endanger India's sovereignty, integrity and security.

Earlier, the RBI had disclosed to a Parliamentary panel that it was advised by the Modi government to approve demonetisation, on November 7, just a day before the PM’s speech. This is in stark contrast to Union Power Minister Piyush Goyal’s assertion before Parliament on December 16 that it was the RBI which suggested withdrawal of Rs 500 and Rs 1000 notes.

In a 7-page note to the Parliament's Department-Related Committee of Finance headed by Congress leader M Veerappa Moily, the RBI stated that the Government had on November 7, 2016 "advised the Reserve Bank that to mitigate the triple problems of counterfeiting, terrorist financing and black money, the Central Board of the Reserve Bank may consider withdrawal of the legal tender status of the notes in high denominations of Rs 500 and Rs 1,000."

The RBI's Central Board met the very next day to "consider the Government's advice," and after "deliberations," decided to "recommend to Central Government that the legal tender status of the banknotes in the high denominations of Rs 500 and Rs 1000 be withdrawn."

The Union Cabinet headed by Modi met within hours of that recommendation on November 8 and banned circulation of old 500 and 1000 rupee notes.