Demonetization diary

Demonetization diary

The following persons only were aware of the plan.

1. PM Narendra Modi

2. Finance Minister Arun Jaitley

3. RBI Ex-Governor Raghuram Rajan

4. RBI Governor Urijit Patel

5. Secretary of Economic Affairs Shaktikanta Das

6. Secretary of Investments & Currency Dr. Saurabh Garg

7. and a few others in finance ministry.

Because the plan was finalized six months back and Mr. Rajan left office on 4th September 2016 only. So such a decision can’t be carried out without the approval of RBI Governor.

The detailed execution went something like this.

Before Six Months- Plan was finalized and execution for the D-Day started.

June – Banks were directed to dispense more 100 rupee note by RBI.

Before three Months- Design of new 500 & 2000 rupee note was finalized and went for printing at Mysuru Mint press.

PS: Only the design of the plate was finalized. The printing didn’t start that time as Mr. Rajan denied continuing for next term and new governor was declared.

The printing facility at Bharatiya Reserve Bank Note Mudran Private Ltd. (BRBNMPL) in Mysuru under Reserve Bank of India was set up with the De La Rue Giori, now KBA Giori, Switzerland.
20 August – Mr. Urjit Patel was declared as new governor.

4 September – Mr. Urjit Patel joined office as new governor and gave a green signal to Modi for demonization after a thorough discussion. He sent his signature sample in English and Hindi to be added to newly designed 2000 currency plate.

5–6 September – Signature was added to the plate and new dye was made. Printing of currency started.

27 October – The central bank put out a warning about fake currencies on its website. It asked banks to put entire banking areas under CCTV surveillance and ensure that cash receipts in the denominations of Rs 100 and above are not put into re-circulation without the notes being machine-processed for authenticity.

The CCTV surveillance is now being used to monitor and record all the money exchanges that are taking place at banks.

2 November – Banks were directed again to dispense more Rs 100 notes through ATMs within the next fortnight.

7 November – The Heads of currency management divisions in all banks received a confidential communication from the Reserve Bank of India (RBI) to be present at the headquarters.

8 November Morning- They were given charge of a double-locked currency chest, which they were told contained currency notes of the new denomination: Rs.2,000.

Though it also had the RS 500 new notes, but it wasn’t disclosed.

8 November 7 PM- All MDs of banks were called for a meeting at RBI and were kept waited till 8PM. At PMO office, all cabinet ministers were called for a meeting, but no one was allowed to carry mobile.

Privacy was of top most priority. Even leak of the news by a few minutes could have caused disaster.

8 November 8 PM- Disclosure of demonetization by PM on National TV.