The central bank was represented on the committee by its deputy governor in charge of currency, Rajan wrote, possibly implying he did not attend these meetings.
Earlier, the Congress party had termed demonetisation as the "biggest scam" and accused Prime Minister Narendra Modi of misleading the people, saying that he had repeatedly made "false statements" on the decision to junk high-value currency.
Amid lot of controversy over why PM chose to go ahead for demonetization of big value currency notes in November past year, former Reserve Bank of India (RBI) governor Raghuram Rajan has triggered another debate by revealing that he did not favour the move as he felt the short term economic costs associated with "such a disruptive" decision would outweigh any longer term benefit.
Raghuram Rajan gave his view orally that although there might be long-term benefits, the likely short-term economic costs would outweigh them. He clearly said, "I made these views known in no uncertain terms". "If the government, on weighing the pros and cons, still chose to go ahead with demonetisation, the note outlined the preparation that would be needed, and the time that preparation would take". "The RBI flagged what would happen if preparation was inadequate", said Rajan.
"At no point during my term was the RBI asked to make a decision on demonetisation", Rajan wrote in his new book which is a compilation of the wide-range speeches he delivered as RBI governor.
Modi had been intending to make it hard for hoarders of undeclared wealth to exchange their undeclared cash for legal tender, but it seems most of it was returned by individuals, implying there was a very small amount of unaccounted money held in cash or evaders had managed to legalize their unaccounted money.
"It's not that easy to flush out the black money", Rajan had said, using the local term for cash stashed away illegally to avoid tax.
He further added that he had suggested other ways to stamp out the black money from the system.
Nearly everyone has spoken about the impact of demonetisation announced by the Narendra Modi government past year.
According to the annual report released by RBI, about 99 percent of the demonetised notes have come back to the banking system which amounts to Rs 15.28 trillion of the Rs 15.44 lakh crore of the total demonetised currency while only about Rs 16,000 crore of Rs 15.44 lakh crore has not returned to the banking system. More than 1.5 million jobs were said to be lost and newspapers reported deaths linked to the decision. "But the key question is whether such a drastic measure was required to achieve these objectives".