Bimal Jalan also says note ban to lower GDP

Mumbai: Former Reserve Bank of India governor Bimal Jalan on Tuesday echoed views of some economists on government’s 'abrupt' decision to recall high value notes and said that the move would impact GDP growth in the range of 0.5 per cent to 2 per cent.

Last year taking part in a debate on demonetisation in Rajya Sabha, former Prime Minister Manmohan Singh had told that demonetisation would drag GDP growth down by 2 per cent.

Jalan who happened to be RBI governor during 1997-2003, first full tenure of the National Democratic Alliance government led by Atal Bihari Vajpayee, told CNBC-TV18 that the it would be a bit early to comment on the impact of note ban on investments in country.

“Autonomy of RBI is a fundamental that has to be maintained,” Jalan told CNBC-TV18. He also told the channel that there wont’ be any differences between government and RBI.