Former Indian Prime Minister Manmohan Singh has rubbished the government’s move to ban two major currency notes, calling it “monumental mismanagement”.
Mr Singh, the architect of economic reforms in the 1990s, said GDP would fall “by about 2%” because of the move.
Earlier this month Prime Minister Narendra Modi announced that 500 and 1,000 rupee notes had become illegal as part of a crackdown on corruption.
But scarcity of new notes has brought the economy to a virtual standstill.
Mr Singh, who is credited with opening up India’s economy when he was finance minister in 1992, told MPs the move “can weaken and erode our people’s confidence in the currency system and in the banking system”.
He said it amounted to “legalised plunder”.
Earlier, the rupee fell to almost 69 to the US dollar, a record low.
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