Note ban was reason Raghuram Rajan left the RBI, claims Chidambaram

Former finance minister and senior Congress leader P. Chidambaram on Friday said that a five-page letter speaking against demonetisation was submitted to the Centre by “someone in the Reserve Bank of India” on the day Raghuram Rajan stepped down from the post of Governor of the apex bank.

Former finance minister and senior Congress leader P. Chidambaram on Friday said that a five-page letter speaking against demonetisation was submitted to the Centre by “someone in the Reserve Bank of India” on the day Raghuram Rajan stepped down from the post of Governor of the apex bank.

Former finance minister P Chidambaram (far right) at the release of his book ‘Fearless in Opposition’ with CPI(M) leader Sitaram Yechuri (centre) and Bihar Chief Minister Nitish Kumar (left), in New Delhi on Friday. (PTI)

Chidambaram dared the government to make the letter public. He made this comment at an event organised to launch a book written by him -- ‘Fearless in Opposition, Power and Accountability’.

“If the government is transparent, it should make that note (letter) public. The note was written on behalf of RBI. It was about demonetisation arguing why it should not be implemented,” Chidambaram.

Chidambaram said demonetisation was one of the reasons why Rajan left.

“They (government) made it so difficult for Rajan to continue and, in retrospect it appears, one of the reason he was made to leave. They wanted to demonetise currency and Raghu was opposed it,” Chidambaram said.