Reveal it all

Himself a former RBI Governor, Dr Manmohan Singh has understandably rescued Urjit Patel from tough questioning by parliamentarians. As an institution the RBI deserves all respect and its autonomy has been recognised and appreciated in the past. All that is expected of it now is to act independent of the government and make available all the troubling information people and their representatives seek. Silence over, or evasion of difficult issues will not make them go away. We have a demanding, even if raucous, democracy. If the RBI’s role in demonetisation is questioned, including by some of its former heads, the central bank should respond to what they say. 

What transpired at various levels in the run-up to the “notebandi” decision is not being put in public domain. Surprisingly no minutes were maintained of consultations over a decision that shook the nation, the fallout of which has drawn flack all over. Dr Manmohan Singh called it “monumental mismanagement” and “organised loot”. Both the RBI and the government share the blame. Agreed, civility should not be abandoned and questions should not be impolitely asked but that is no ground for the denial of information sought. The BJP is selling demonetisation as an achievement in the ongoing polls. It is important for the RBI to reveal all that helps the voter verify the government’s claims of success, particularly on black money. A post-poll disclosure of how much demonetised cash returned to the banking system would be politically less relevant.

What the RBI chief has revealed is not very illuminating. If the government and the RBI had been in touch over the note ban since January last year and the actual decision was taken on May 27, as media reports suggest, then why such lack of preparedness? Why a compromise on autonomy? If the curbing of black money was a goal, then why print the 2,000 note? There are questions the RBI and the government cannot evade. The RBI chief has squandered another opportunity to lift the veil of secrecy that shrouds decision-making.