Frequent changes in rules in the deposit of old currency indicate that there was little planning behind demonetisation. The latest rule — that deposit of more than Rs 5,000 in old currency can be made only once per account — reveals that neither the government nor the Reserve Bank of India had got the new currency notes in circulation before the announcement of demonetisation on November 8.
More money has come in than was expected. This has hit the “demonetisation will trap black money” objective out of the park. The “dam” is full. Now it may even burst — more money in old currency may come in than was printed!
Evidently, these frauds — whether internal or external — have the government in a tizzy. These frauds might have happened during the term of the United Progressive Alliance and possibly even during the early days of the National Democratic Alliance after it came to power in 2014. Notes bearing the signature of D Subba Rao were released in 2014 although he ceased to be the RBI governor in 2013. Who printed these? Could an Indian currency press make this mistake?
To sweep everything under the carpet, banks have now been told to discourage deposits and the government has said the black money collected would be used for Pradhan Mantri Grameen Kalyan Yojana.
T R Ramaswami Mumbai
