Thread by @GorwayGlobal

A 🧵on the role of @RBI in the lead up to #DeMonetisation of Nov 8, 2016
based on publicly available information. I am neither a sleuth nor an investigative journalist. All I can do is apply common sense to available information.
The Government submitted an affidavit to SC.

A 5 judge bench was hearing a batch of apeals against the Govt's act of invalidation the country's currency on 8 Niv 2016.
See for details this report in @ndtv
I have not seen the full affidavit. An affidavit BTW is sworn testimony.
ndtv.com/india-news/dem…

We don't know who signed this affidavit. That's important. because if any part of it is untrue then he who signed it has committed perjury.
Anyway acc to news reports, the Govt had held "extensive consultation" with @RBI and "advance preparations" were made before #NoteBandi.

That sounds like porkies to me. If the chaos of 50 notifications and changes to the rules in the first few days was anything to go by then it looked like the kind of advance preparations 3 year old kids make for a picnic: total chaos.

We are told the affidavit says, ""The withdrawal of the legal tender character of the SBNs was by itself an effective measure, also a part of a larger strategy for combating the menace of fake money, terror financing, black money and tax evasion, but not confined to them alone."

That sounds like post facto gobbledy-gook. Basically it says "our intentions were pure and wide ranging, so wide ranging we could not list all the benefits in advance."

The affidavit is reported to say, ""The Central Board of the RBI made a specific recommendation to the central government for the withdrawal of legal tender character of the existing series of ₹ 500 and ₹ 1,000 banknotes." and further..

"The RBI also proposed a draft scheme for.. implementation. The recommendation and the draft scheme were... considered by the Central Government and, based on that, the Notification was published in the Gazette of India declaring that the SBNs shall cease to be legal tender,"

Let's consider this in the context of news reports at the time.
This from Times of India of 11 March 2019. Allegedly the RBI Board met on the 8 Nov 2016. and 'approved' #DeMonetisation.
timesofindia.indiatimes.com/business/india…

This report raises more questions than it resolves. Why did news of the Board meeting appear in March 2019. The RBI even publishes minutes of its Interest rate setting meetings after a gap of 2 months. Why not publish these minutes? why the leaks 2 years or more later:

Lets look at Press releases from that time:
here's @RBI Press release 2016-2017/1146 issued on 8 Nov 2016.
rbi.org.in/Scripts/BS_Pre…

It announced that RBI would 'shortly introduce' new ₹500 banknotes in "Mahatma Gandhi (New) Series with inset letter ‘E’ in both the number panels, bearing the signature of Dr. Urjit R. Patel, Governor; the year of printing '2016’ and Swachh Bharat Logo printed on the reverse"

That does not sound like a Central Bank that was aware that within the day all existing ₹500 were going to be nuked. Earlier it issued Press release 2016-2017/1144 about ₹ 2000 notes.

Again this note and the earlier 500 Rs note were both planned for some time and NOT as a responseto the impending #Notebandi. Then the very next PR was Press Release : 2016-2017/1145. it sounded very same but much brefer. It said

"The Reserve Bank of India will shortly issue ₹ 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with the inset letter ‘R’, bearing signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India, and the year of printing '2016' printed on the reverse. "

"

But it also said, "The design of these notes to be issued now is similar in all respects to the ₹ 2000 banknotes in Mahatma Gandhi (New) Series which was notified through Press Release No. 1144 dated November 08, 2016."

So it appears to me that between authorising releases 1144 and 1145, the bank became aware that the 200 Rs notes would be needed in a real hurry and lots of them But Press Release : 2016-2017/1143 announced that banks would be shut on Wednesday 09 Nov. No reason given.

Press Release : 2016-2017/1142 was the crucial announcement of NoteBandi.
rbi.org.in/Scripts/BS_Pre…

"Government of India vide their Notification no. 2652 dated November 8, 2016 have withdrawn the Legal Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Reserve Bank of India till November 8, 2016."

At the time that RBI was putting out these press notices the Prime Minister was saying. (see pic). This does not sound like RBI had done much preparation or even that it had much notice of the impending doom of #NoteBandi.