RBI must have talked to states: Thangam Thennarasu

TIRUCHY: The Reserve Bank of India should have consulted with the finance departments of each state and the public before the announcement of the withdrawal of Rs 2,000 denominations, said Minister for Finance and Human Resources Thangam Thennarasu on Saturday.

Speaking to reporters on the sidelines of inaugurating the excavation process at Porpanaikottai in Pudukkottai district, Minister Thennarasu said, the RBI has announced that the Rs 2,000 notes are withdrawn and asked the business houses not to circulate them as the usage of the notes would come to an end by September 30.

“When the RBI takes such a major decision in relation to the finance, it should consult the stakeholders and also should discuss with the people working with the finance department, including the state governments,” said the Minister.

The Minister also said that it is the responsibility of the Union government to consult with the state governments. “This is a serious matter and the Union government should not entertain such a unilateral decision on this issue,” Thennarasu added.

Pointing out that the demonetisation in 2016 was a great flaw on the part of the Union government, the state Finance Minister said, it had a severe negative impact among the people and many people even lost their lives. “The DMK had opposed the demonetisation move,” he said.

“We urge the Union government to consult with the state governments while taking any such decision in the future,” the Minister said.

Earlier, he inaugurated the excavation process at Porpanaikottai near Alangudi in Pudukkottai. Ministers S Regupathy and Siva V Meyyanathan, Collector Kavitha Ramu and MP MM Abdulla and others were present.