NEW DELHI -- After two former RBI Governors Y V Reddy and Bimal Jalan, Nobel Laureate Amartya Sen on Tuesday raised questions on Reserve Bank's autonomy saying now a days the central bank does not decide anything and all decisions are taken by Prime Minister Narendra Modi.
Highly critical of the demonetisation, Sen opined that it has failed to eliminate black money, though Modi would continue to get the 'benefit of doubt'.
"People think Prime Minister is doing something to eliminate black momey... Modi will continue to get benefit of doubt... The idea that rich is suffering is appealing to poor people," Sen told India Today TV in an interview.
On RBI's decision to ban exchange of scrapped notes after 30 December, he said, "I don't think this is RBI's decision. This must be Prime Minister's ...I don't think RBI decides anything at this time."
Modi in his 8 November address to the nation had said those who could not deposit old notes by 30 December could "go to specified offices of the Reserve Bank of India up to 31 March, 2017 and deposit the notes after submitting a declaration form."
Sen further said the RBI was quite independent when Raghuram Rajan was Governor. It was served by illustrious persons like I G Patel and Manmohan Singh.
Earlier, Reddy as well as Jalan had underlined the need for preserving the autonomy of RBI.
As regards the black money, Sen said it was puzzling why the government opted to eliminate tiny 6 per cent black money by demonetising 86 per cent of the currency. Several countries including USA, Japan have lots of cash.
On the government's claim of eliminating fake currency through demonetisation, he said it was never a problem.
"Fake money was never a big problem in India. Fake money problem was not something you want to hold while economy in ransom," the Nobel laureate said.
The demonetisation decision was taken by small group of people, he said, adding state governments should have been consulted as India has a federal polity.
The government in a surprise move demonetised ₹500 and ₹1,000 notes, which constituted 86% of the currency, from midnight of 8 November.
Endangered Animals
Cheetah Cubs(01 of16)
Open Image ModalThree cheetah cubs, born in November 2004, lean against their mother during a preview showing at the National Zoo in February 2005 in Washington D.C. Today there are just 12,400 cheetahs remaining in the wild, with the biggest population, totaling 2,500 living in Namibia. (credit:Getty Images)
Baby Black Rhino(02 of16)
Open Image ModalA baby Black Rhinoceros stands in front of its mother in an enclosure at Tokyo's Ueno Zoo in June 2009. The Black Rhinoceros is a critically endangered species, according to the International Rhino Foundation there are less than 5,000 surviving in the world. (credit:Getty Images)
Orangutans(03 of16)
Open Image ModalAn orangutan infant at Ragunan Zoo in Jakarta, Indonesia, on February 15, 2007. Orangutans are threatened by deforestation and hunting. Click here for more orangutan photos. (credit:Getty)
Koala(04 of16)
Open Image ModalA baby joey koala at Sydney's Wildlife World. Though koalas are Australia's most iconic and adored marsupials, they are under threat due to a shortage of suitable habitat from mass land clearance. (credit:Getty Images)
Gorilla Mother And Son(05 of16)
Open Image ModalA 15-year-old female mountain gorilla holds her five month old son at the Kahuzi Biega Nature Park in Democratic Republic of Congo in May 2004. Only 700 mountain gorillas are left in the world, and over half live in central Africa. (credit:AP)
African Penguins(06 of16)
Open Image ModalA group of African penguins gather near a pond at a conservation site in Cape Town, South Africa. Birdlife International say the African penguin is edging closer to extinction. (credit:Getty Images)
Endangered Tiger Cubs(07 of16)
Open Image ModalA Trio of 45 day-old Bengal white tiger cubs were born in December 2007 At the Buenos Aires Zoo. With only 240 white tigers living in the world, their birth gave a boost to the animals' endangered population. (credit:AP)
South Korea's Black Bears(08 of16)
Open Image ModalA pair of black bears sit at a zoo in Kwachon, South Korea in November 2001. Black bears have been on the endangered species list since 2007. (credit:Getty Images)
Madagascar Lemur(09 of16)
Open Image ModalA newly born Madagascar Lemur, an endangered species, at Besancon Zoo in France. There are only 17 living in captivity worldwide. (credit:Getty Images)
Red Pandas(10 of16)
Open Image ModalTwo-month-old twin Red Panda cubs make their debut at Taronga Zoo in March 2007 in Sydney, Australia. The cubs were born out of an international breeding program for endangered species. (credit:Getty Images)
Lin Hui(11 of16)
Open Image ModalChina's panda is one of the world's most beloved but endangered animals. Lin Hui, a female Panda- on a ten-year loan from China - eats bamboo at Chiang Mai Zoo in Thailand in Sept 2005. Captive pandas are notoriously poor breeders. (credit:AP)
South East Asian Monkey(12 of16)
Open Image ModalThe Sydney's Taronga Zoo is home for this bright orange male infant monkey. This South East Asian monkey is highly endangered. (credit:Getty Images)
Night Monkey(13 of16)
Open Image ModalA grey-bellied Night Monkey born in captivity climbs onto his mother's arms at the Santa Fe Zoo, in Medellin, Colombia. The Night Monkey is an endangered species. (credit:Getty Images)
Tigers(14 of16)
Open Image ModalA six-month-old male Sumatran tiger cub rests under his mother careful watch at the National Zoo in Washington in October 2004. Sumatran tigers are endangered; fewer than 500 are believed to exist in the wild and 210 animals live in zoos around the world. (credit:AP)
Elephants(15 of16)
Open Image ModalA baby elephant is pictured at the Singapore Zoo on Friday, Dec. 10, 2010. Many elephants are threatened by habitat loss and listed as endangered on the IUCN Red List. (credit:AP)
Polar Bears(16 of16)
Open Image ModalA sow polar bear rests with her cubs on the pack ice in the Beaufort Sea in Alaska. In 2008, the U.S. government described polar bears as threatened under the Endangered Species Act. Due to dangerous declines in ice habit, polar bears are at risk of becoming endangered. (credit:AP)