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PM Modi went for demonetisation first, RBI’s formal approval came five weeks later

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Demonetisation queue

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On a day when ‘#DemonetisationYaadRakhna’ (always remember demonetisation) was a top tending hashtag on Twitter to remind people of the hardships brought about by Prime Minister Narendra Modi’s sudden and drastic step, news reports based on reply to a RTI query said he had gone ahead and done it even before formal approval by the RBI central board.

The demonetisation of Rs 500 and Rs 1,000 notes, which saw 86 per cent of high-value currency going out of circulation, was announced by PM Narendra Modi on November 8, 2016.

Urjit Patel-led RBI board had met just two-and-a-half hours before Modi’s announcement, said media reports. However, the minutes of the meeting were signed by the RBI governor five weeks later on December 15, 2016.

According to the minutes of the 561st meeting of the RBI’s Central Board, which was convened hurriedly in New Delhi at 5.30 pm on November 6, the central bank’s directors described the move as “commendable” but also warned that demonetisation “will have a short-term negative effect on the GDP for the current year”, the Indian Express had reported last year.

The RBI board, which included the present Governor Shaktikanta Das as a director, had also observed that demonetisation would not have any material impact on tackling the black money menace or counterfeit currency — the prime objectives cited by the PM while announcing the move.

“It is a commendable measure but will have short-term negative effect on GDP for the current year. Most of the black money is held not in the form of cash but in the form of assets such as gold or real estate and that this move would not have a material impact on those assets,” as per the minutes posted by RTI activist Venkatesh Nayak on the website of Commonwealth Human Rights Initiative.

In another reply, the RBI revealed it had no data on the old Rs 500 and Rs 1,000 notes used to pay for utility bills such as fuel at petrol pumps — payments that are anonymous and are believed to have formed a good part of the demonetised currency that returned to the banking system.

The RBI, in its annual report for 2017-18 on August 29, 2018, said that nearly all the money that was withdrawn returned to the banking system. The RBI said it had received Rs 15.31 lakh crore of Rs 500 and Rs 1,000 notes, or 99.3 per cent of the Rs 15.417 lakh crore worth of notes which were in circulation as on November 8, 2016.

This meant that just Rs 10,720 crore of Rs 500 and Rs 1,000 notes failed to come back to the RBI, as against government expectations that well over Rs 3 lakh crore of black money would not return to the banking system.

The sudden withdrawal of notes led to a liquidity shortage and GDP growth declining close to 1.5 per cent.

Senior Congress leader Jairam Ramesh said that the RBI board had backed the move as it was “pressured” by the government. “Demonetisation, issued through a Tughlaqi farmaan (autocratic and arbitrary decision), had destroyed the Indian economy,” PTI quoted Ramesh as saying.

Ramesh said if Congress came to power all abnormal flows from legitimate tax havens and abnormal deposits in cooperative banks would be probed. “The first thing that we will do when we come to power is restore the autonomy and independence of the RBI,” he said.[/vc_column_text][/vc_column][/vc_row]

India News

Priyanka Gandhi and Prashant Kishor held talks in Delhi after Bihar election setback

Priyanka Gandhi Vadra and Prashant Kishor reportedly met in Delhi days after both Congress and Jan Suraaj suffered setbacks in the Bihar Assembly election.

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Priyanka Gandhi

Congress MP Priyanka Gandhi Vadra and Jan Suraaj chief Prashant Kishor met in Delhi last week, days after the Bihar Assembly election delivered a setback to both political outfits, sources said. The meeting reportedly took place at Sonia Gandhi’s 10, Janpath residence and lasted several hours.

While the interaction has triggered political speculation, both leaders have publicly played down any significance. When asked about the meeting, Priyanka Gandhi said there was little interest in who she meets or does not meet. Prashant Kishor, on the other hand, denied that any such meeting had taken place

Bihar rout brings renewed focus on opposition strategy

The reported interaction followed disappointing election outcomes in Bihar. Jan Suraaj contested 238 Assembly seats but failed to secure a single win, while the Congress managed only six victories out of the 61 seats it contested, a drop of 13 seats compared to the previous election

Sources familiar with the developments indicated that the poor showing by both sides has reopened conversations about future political strategy, especially with several major state elections scheduled over the next two years

A relationship marked by past cooperation and friction

Prashant Kishor has previously worked with the Congress, with mixed outcomes. In 2017, he played a key role in the Congress’s victory in Punjab, but the same year saw the party suffer defeat in Uttar Pradesh. The contrasting results led to internal disagreements, with some party leaders later questioning Kishor’s approach and influence

Talks of Kishor formally joining the Congress resurfaced ahead of the 2022 Uttar Pradesh election, with discussions involving senior party leaders. However, those negotiations collapsed amid differences over organisational reforms and decision-making authority. Kishor later described his experience with the party as unsatisfactory and ruled out joining it, citing resistance to structural change

Jan Suraaj’s debut and future calculations

After parting ways with the Congress, Kishor launched Jan Suraaj with the aim of reshaping Bihar’s political discourse. Despite claims that the party shifted focus from caste-based politics to employment issues, its electoral debut failed to translate into votes

Sources suggest that recent defeats across the opposition spectrum have prompted fresh assessments ahead of upcoming elections in Tamil Nadu, West Bengal and Assam in 2026, followed by Uttar Pradesh in 2027. The longer-term focus remains the 2029 Lok Sabha election, where the ruling party is expected to seek another term

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Omar Abdullah distances INDIA bloc from Congress’s vote chori campaign

Omar Abdullah has clarified that the INDIA opposition bloc is not linked to the Congress’s ‘vote chori’ campaign, saying each party is free to set its own agenda.

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Jammu and Kashmir Chief Minister and National Conference leader Omar Abdullah has drawn a clear line between the INDIA opposition bloc and the Congress’s ongoing ‘vote chori’ campaign, stating that the alliance has no role in the issue being raised by the grand old party.

Speaking to the media, Abdullah said every political party within the alliance is free to decide its own priorities. He underlined that the Congress has chosen to focus on alleged irregularities linked to voter lists and electoral processes, while other parties may pursue different agendas.

According to Abdullah, the INDIA bloc as a collective is not associated with the ‘vote chori’ narrative. He added that no party within the alliance should dictate what issues another constituent should raise in public discourse.

The remarks came days after the Congress organised a large rally in the national capital to intensify its campaign. The party has alleged that the Election Commission is working in favour of the BJP to influence electoral outcomes. Both the poll body and the ruling party have rejected these claims.

INDIA bloc cohesion under scrutiny

Abdullah’s comments have gained significance as they follow his recent observation that the INDIA bloc is currently on “life support”. That remark, made during an interaction at a leadership summit in Delhi, triggered mixed reactions from alliance partners.

At the event, Abdullah had said the opposition grouping revives intermittently but struggles to maintain momentum, especially after electoral setbacks. He also pointed to the Bihar political developments, suggesting that decisions taken by the alliance may have contributed to Nitish Kumar returning to the NDA fold. He further cited the inability to accommodate the Hemant Soren-led Jharkhand Mukti Morcha in Bihar seat-sharing talks as a missed opportunity.

Allies respond to Omar Abdullah’s remarks

Reactions from within the INDIA bloc reflected differing views on Abdullah’s assessment. RJD leader Manoj Jha termed the remarks “rushed” and said responsibility for strengthening the alliance lies with all constituents, including Abdullah himself.

CPI general secretary D Raja called for introspection among alliance partners, questioning the lack of coordination despite the stated objective of defeating the BJP and safeguarding democratic values.

Samajwadi Party MP Rajeev Rai disagreed with the “life support” analogy, saying electoral defeats are part of politics and should not demoralise opposition forces. He cautioned that internal pessimism only serves the BJP’s interests.

BJP targets opposition unity

The BJP seized on the comments to attack the opposition bloc’s unity. Senior leader Shahnawaz Hussain dismissed the INDIA alliance as defunct, claiming it lost relevance after the Lok Sabha elections and lacks leadership and a clear policy direction.

Abdullah’s latest clarification on the ‘vote chori’ campaign reinforces the visible differences within the opposition alliance, even as its constituents continue to debate strategy and coordination ahead of future political battles.

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Nitin Nabin terms BJP working president role a party blessing, thanks leadership

BJP national working president Nitin Nabin has termed his appointment a blessing of the party, thanking its leadership and pledging to work on the ideals of his late father.

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Nitin Nabin

Newly appointed BJP national working president Nitin Nabin on Monday described his elevation as a blessing bestowed by the party and expressed gratitude to its top leadership for placing faith in him.

Speaking to reporters in Patna after paying floral tributes to a statue of his late father, former BJP MLA Nabin Kishor Prasad Sinha, the Bihar minister said he would continue to work on the principles he inherited from his family and the organisation.

“I have always worked on the ideas of my father, who treated the party like his mother and put the nation above everything else. I believe that is why the party has given me this responsibility,” Nabin said. He later visited Mahavir Mandir in the city to offer prayers.

Gratitude to Prime Minister, focus on Antyodaya

Thanking Prime Minister Narendra Modi for his guidance, Nabin said development under the current leadership has reached towns and villages across the country. He added that the party has expanded its presence and emerged as a platform representing the poor.

According to Nabin, no section of society has remained untouched by the welfare initiatives of the NDA government. He said the idea of Antyodaya has now reached every corner of India, recalling the contributions of Deendayal Upadhyaya, Syama Prasad Mookerjee and Atal Bihari Vajpayee in shaping the philosophy.

On elections and party organisation

Responding to questions on upcoming elections, including in West Bengal, Nabin said BJP workers remain active at all times. He remarked that unlike other parties, BJP cadres work round the year and remain prepared in every state.

At 45, Nabin is a five-time MLA from the Bankipur assembly constituency and has served twice as a minister in the Bihar government. He comes from an RSS background and is currently part of the Nitish Kumar-led state cabinet.

A generational shift in the party

Nabin’s appointment as national working president on Sunday was seen as a significant organisational move. The position, though not mentioned in the party constitution, has earlier served as a transition role before elevation to the top post.

Prime Minister Modi publicly endorsed the decision, describing Nabin as a hardworking and grounded leader with strong organisational experience. Party leaders have projected the move as part of a generational shift, with Nabin expected to follow a trajectory similar to that of the current national president, who had earlier served as working president before taking charge of the organisation.

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