P Chidambaram rubbishes RBI report on demonetisation, says brain behind the move be awarded Nobel

After Reserve Bank of India’s annual report, as per which 99% of the Rs 500 and Rs 1000 notes worth Rs 15.44 around 99%returned to the banking system.

On this former finance minister, P Chidambaram lashed out at the reserve bank saying the decision to demonetise Rs 500 and Rs 1000 notes did not give the desired result. He also questioned the Narendra Modi government whether its demonetisation decision was designed to convert black money into white.

The opposition was quick to seize on the data to attack the government with former finance minister P Chidambaram saying,"RBI 'gained' Rs 16000 crore, but 'lost' Rs 21000 crore in printing new notes! The economists deserve Nobel Prize." "Rs 16,000 cr out of demonetized notes of Rs 15,44,000 credit not come back to RBI. That is 1 per cent. Shame on RBI which 'recommended' demonetization," he tweeted.

Chidambaram also wondered if demonetization was "a scheme designed to convert black money into white?". Samajwadi Party leader Naresh Agarwal said his party would move a privilege motion against RBI Governor Urjit Patelfor misleading a parliamentary panel on the issue.

On this Jaitley attacked the opposition in his speech by saying that those who never acted against black money while in power were trying to create a confusion that the success of note-ban hinges on the amount of money that stays out of the system.

After the note ban, old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny. A collateral damage as a result of rising in printing and other cost was dividend RBI pays to the government.