New Delhi, Sep 3 (Zee News): Making disclosure on demonetisation decision taken by the government during his Governership of the Reserve Bank of India (RBI) in his latest book - I do what I do – Raghuram Rajan said that he was not in favour of note ban as short term economic costs associated with such a disruptive decision would exceed long term benefits.
The former Governor of the RBI writes that the Central Bank wasn't asked to take such a decision at any point during his tenure at the Reserve Bank.
Rajan's book gives a wonderful insight in form of various accounts reflecting his very unstable relationship with the present government.
He also wrote that he was asked by the government in February 2016 for his view on demonetisation, which he gave orally. Although there might be long-term benefits, he felt the likely short-term economic costs would outweigh them.
He didn’t elaborate on the short-term costs or the possible long-term benefits, but as the RBI governor he "felt there were alternatives to achieve the main goals."