India's demonetisation of rupee hurts confidence in RBI: S&P

Mumbai

INDIA's surprise move to abolish high-value rupee notes has undermined the central bank's reputation for competence and independence, even as it remains a credible institution, Standard & Poor's director Kyran Curry said on Wednesday.

The comments come as the Reserve Bank of India and the government face criticism for their implementation of the demonetisation initative in November, abolishing 500 and 1,000 rupee notes which accounted for 86 per cent of the currency in circulation.