Mumbai, Dec 26: Citing laws on security and economic interests, the Reserve Bank of India (RBI) had decided not to share details of its recommendations that led to declaring the Rs 500 and 1,000 notes as no longer legal tender. The decision on demonetisation was made by Prime Minister, Narendra Modi on November 8.
The RBI told an RTI activist that documents pertaining to the decision on demonetisation were exempt under Section 8(1) (a) of the Information law. Under this clause the government bodies can withhold information that can compromise the country's sovereignty, security, and strategic or economic interests.
There were media reports that the decision on demonetisation was taken hours before the announcement was made on November 8. The government has been guarded while giving out details about what led to the decision and when was it proposed.
The economics affairs secretary, Shaktikanta Das had told reporters that there was no need to go into the process and the focus should now be on the outcome of the decision. As per the Reserve Bank of India Act of 1934, the government can demonetise any series of bank notes. However, the decision can be taken only on the recommendation of the RBI's central board the act also states.
The PM prior to making the announcement met with his Cabinet and informed the ministers about the same. All the ministers were told to leave their mobile phones outside when the decision was made known to them.
Further the ministers were also asked to stay back until the PM's nation to the address was telecast.