Know what Raghuram Rajan did to exchange his 'old' notes after demonetisation


"There was absolutely no date fixed for demonetisation", he said, adding that he was completely oblivious to the demonetisation date. He was vocal about the process since he gave his verdict verbally and did not approve it in writing as he was convinced that the short-term cost of note ban would outweigh the long-term gains.

Prime Minister Narendra Modi on November 8 past year announced the move to curb the menace of black money, much to the surprise of everyone.

Elaborating on the issue, Rajan, the only RBI Governor since Independence who did not have his term renewed by the government, said: "Every authoritarian regime comes to a turning point when it has to answer the question of how to increase growth".

Rajan took over as RBI chief on September 4, 2013, and held the position for three years before going back to teaching at the University of Chicago.

He also praised Right to Privacy judgement passed by the Supreme Court and said, "We are open, tolerant society open to different viewpoints".

Recently, when the figures of country's Gross Domestic Product (GDP) for the first quarter of the current fiscal that ended in June were declared, the negative impact of demonetisation was clearly felt. "So we need some protection for the bankers, there's some legislation underway and trying to create a protection", opined the former RBI governor. "I would prefer that we establish another 10 years of very strong growth of 8-10 per cent".

"Remember that we have what we call the population dividend. It will be a very unhealthy climate then, which will impede economic growth".

Is there a possibility of Rajan returning to India for another stint at RBI?

The central bank said in its annual report last week that 99 percent of those notes were deposited or exchanged for new currency, suggesting that most people, including those who hoarded illicit wealth in cash, have managed to preserve their fortunes. "But yes, if called upon, and if there is a place where you can make a big difference, of course", he said.