Chidambaram says add another Rs 50,000 crore as cost of demonetisation to RBI’s dividend

Chidambaram's remarks came as the amount of dividend revealed by RBI was less than half of the dividend transferred by RBI to the government a year earlier.

By: Express Web Desk | New Delhi | Published:August 11, 2017 1:19 pm
P Chidambaram, Chidambaram emergency, emergency period, congress news, india news, latest news, indian express Former Union Finance Minister P Chidambaram. (File)

A day after the Reserve Bank of India (RBI) announced it will transfer Rs 30,659 crore as surplus to the government for the year ended June 2017, former Finance Minister P Chidambaram slammed the government’s demonetisation move yet again. In a post on Twitter, Chidambaram said another Rs 50,000 crore should be added as the cost of note ban move that was implemented by the Centre last year. “Cost of demonetisation: Add another Rs 50,000 crore revealed by RBI,” the Congress leader said.

His remarks came as the amount of dividend revealed by the RBI was less than half of the dividend transferred by RBI to the government a year earlier. Chidambaram further asked RBI if it will reveal breakdown of the Rs 50,000 crore loss/expenditure. “Will RBI reveal breakdown of the Rs 50000 crore loss/expenditure? Will RBI also tell us cost of destroying old notes and cost of printing new/replacement notes?,” he wrote in another tweet.

For the year 2015-16, the RBI had approved the transfer of surplus amounting to Rs 65, 876 crore to the government. A year later, the central Bank paid Rs 65, 896 crore to the government, which helped it in covering the deficit. The reason for the  steep fall in the surplus income was not provided by the RBI.

The Central Government, last year, in a bid to defunct illegal money, scrapped high currency notes, belonging to denomination of Rs 500 and Rs 1000, which paved the way for potential surplus transfer from the RBI due to demonetisation. As per the Specified Bank Notes (Cessation of Liabilities) Act, 2017, the scrapped currency notes of Rs 500 and Rs 1,000 (as announced on November 8 last year) “shall cease to be liabilities of the RBI under section 34 of the Reserve Bank of India Act, 1934 and shall cease to have the guarantee of the Central Government under sub-section (1) of section 26 of the said Act”.

 

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  1. V
    Verma Suresh
    Aug 11, 2017 at 6:23 pm
    Cost to Nation of demonetisation is coming out indirectly. No standardization of notes and poor quality printing. Now wait for the cost of dumped Rs. 2,000 note with new Rs. 200 notes. Great Achievement of this government - but no black money from the foreign counties, big corporate houses and corporate babas.
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      Dasari
      Aug 11, 2017 at 5:07 pm
      This politician is corrupt to core. Legal advice of his own family members saves entire family in courts even after committing grave economic offences. FERA or FEMA violations, if committed by anybody else, like his son would have landed in jail. He has no shame to comment on economy of this country which was spoiled during the Italian rule of a decade.
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      1. N
        Nirav
        Aug 11, 2017 at 3:53 pm
        bhakts.....choooo
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        1. S
          Sri
          Aug 11, 2017 at 3:28 pm
          Where we need to account loot of him and his son
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            Darkhorse
            Aug 11, 2017 at 3:21 pm
            Now Bhakts will rant on this post he should go to Pakistan etc etc. But fact is what he said is correct who is accountable for the huge loss? Who is accountable for the closure of small scale industries and the huge job loss. Nothing changed on the border after that neither in Kashmir. All false propaganda and Photoshop. Any sane person can understand it was a b er aptly said by Dr Manmohan Singh as monumental disaster.
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              Thrinethran T
              Aug 11, 2017 at 4:34 pm
              Why so much frustration? I T R filings have increased 25 percent for individuals, and significant improvements could be expected after end September filings. Over the next few years, DeMo and GST could together lead to an improvement in tax- gdp ratio of 4 percent of the GDP. UPA left a right royal mess in the PSU banks . All those bubbles have burst, but the h-oles remain to be filled. A fine tongue for carping, this PC has.
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                Ashoke
                Aug 11, 2017 at 10:19 pm
                It is alleged that Dr. Man Mohan Singh left a US$ 2.4 Trillion economy, seventh in the world after France, when he laid off his office. Where we have reached today, after demonic demonetisation?
            2. S
              syed ansar
              Aug 11, 2017 at 3:20 pm
              It has been proved beyond doubt that demonetisation was historic b er which cost to the nation unimaginable loss.....all the claims fell flat regarding the success of historic b er.....yet the pardhan sevak boasts of being the true well wisher of nation and a saint...
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                Ashoke
                Aug 11, 2017 at 10:26 pm
                Let us recall that high pitched nasal voice of Mr. Narcissist Mythomaniac "न तो मैं खाऊंगा, न तो मैं किसीको ( मेरे करीब दोस्तों को छोड़के. ) खाने दूंगा, हा. हा हा. " A om sample from the lot Patanjali and PayTM.
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              2. S
                SonSen
                Aug 11, 2017 at 2:53 pm
                Good things don't come cheap!
                Reply
                1. R
                  roby mani
                  Aug 11, 2017 at 2:44 pm
                  Why do these Brahmans get rattled when facts regarding the demonenitation and the bad effect it had on the economy and teh sufferings the people were put to is discussed by Shri Chidambaram. After all it must be accepted that what ManMohan Singh and Chidambaram said about it is happening.
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