New Delhi: Days after an RBI report said the demonetisation of 2016, was not only flopped but also had an adverse effect on the economy, NITI Aayog vice-chairman Rajiv Kumar on Monday blamed the policies under former RBI Governor Raghuram Rajan for the economic slowdown in the country.
Kumar said non-performing assets (NPAs) in the banking sector kept rising when Rajan was RBI Governor. “The declining trend for the last six quarters starting 2015-16, when the growth rate was as high as 9.2%, was not a result of demonetisation. The growth was declining because of the rising NPAs in the banking sector,” Kumar said.
￼ If you look at the growth rate statistic, it came down not because of demonetisation, but was simply the continuation of a trend. Growth rate had been falling for six quarters,’
-Rajiv Kumar, Niti Aayog vice chairman