Raghuram Rajan says he differs with RBI response to Parliament on note ban

NEW DELHI: Raghuram Rajan, a former governor of the Reserve Bank of India (RBI), has said responses given to the parliamentary committee by RBI about demonetisation were not in accordance with his actual response.

Speaking on the launch of his book, ' I do what I do', Rajan said it was not a tell-all book and did not quote private conversation except on demonetisation in the introduction. He said he had wanted to set the record straight on demonetisation as Parliament had a right to know what actually happened.

Rajan has revealed he had warned the government against demonetisation. "Although there may be long-term benefits, I felt the likely short-term economic costs would outweigh them, and felt there were potentially better alternatives to achieve the main goals," he writes in his book. "I made these views known in no uncertain terms."

However, Rajan said he had faced no interference from both the governments in carrying out the agenda of financial sector reforms and had government support all along. He said he had cordial relationship with both the governments.

There was a lot of talk in public about RBI-government tensions but focus on tension missed the cooperation between them, he said.