Government Ordered Notes Ban: Has RBI Credibility Been Hit?

Over the last two months, as the country grapples with the effect of the notes ban, one of the things that has stood out has been the role of India's Reserve Bank. This has been an institution since 1934, whose independence and autonomy were said to be its hallmarks. And yet today, the RBI finds itself facing serious questions on its credibility. The government told us that the notes ban was announced by the Prime Minister after the RBI board took the decision. That is what union minister Piyush Goyal told the Rajya Sabha. Now it emerges that the RBI has in a note to parliamentary panel told them they decided on demonetisation after the government advised them to do so.