The ex-RBI governor had also cautioned the government against inadequate preparations for the note ban.
Former RBI governor Raghuram Rajan says he had warned the government of demonetisation move.
As per him, there were other better ways to achieve the objective.
Rajan, who helmed the central bank between 2013 and 2016, had also cautioned the government against inadequate preparations for the note ban.
"I was asked by the government in February 2016 for my views on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them and there were potentially better alternatives to achieve the main goals. I made these views known in uncertain terms," wrote the ex-RBI governor in his book titled 'I Do What I Do: On Reforms Rhetoric and Resolve'.
In a note handed over to the government, Rajan said he had calculated the potential cost and benefits of demonetisation, and worked on other means to achieve similar aims.
As per him, the government set up a committee to deliberate on the issues. The deputy governor in charge of currency attended the meetings and at no point during my term was the RBI asked to make a decision on demonetisation, he added.
Tuesday, September 5, 2017