Broken Promises: How RBI and Indian Central Government is Cheating Upon its Citizens

Indian central bank RBI (Reserve Bank of India) and the Indian Central Government is cheating upon its citizens by breaking their promises. What promises the RBI and Indian government have made to their citizens which they are breaking? To get the answer of this question we need to analyze the currency note printed by RBI and guaranteed by the Central government. Below is a scanned picture of 100 rupee note. The orange circle contains the text of the promise made by the RBI governor to the bearer of that note. The text reads: I promise to pay the bearer the sum of one hundred rupees. Below the text there is a signature of RBI governor D. Subbarao.

100 Rupee note printed by RBI and backed by Indian Central Government

The yellow circle contains the text of the government backing of this note. It reads: Guaranteed by the Central Government. As is evident in the RBI currency note, RBI and the government have made a promise to pay the said sum (in this case 100 rupees) to the bearer. Now the question is, have they kept their promise or they have broken their promise? The evidence which I will present now will prove that they have broke their promises and thus have cheated their citizens.

The Broken Promises 
How did they break their promises? They broke the promises by paying less than the printed promised amount on the note to the citizens. RBI and Central government are paying less to their citizens by reducing the purchasing power of their rupee note. This they do through Inflation. Let me give you a concrete example to drive home the point. Let us take the case of currency note on one side and commodity 'onion' on other side. Table 1 below presents the 10 year price of 100 kg onion in the Vadodara market.  As you can see, in 2001 it took 375 rupees to buy 100 kg of Onion. While it took 2,250 rupees to buy that same 100 kg onion in 2010. What has happened during this 10 years? Have onion became more dearer? No. RBI currency notes have become more cheaper. It takes more notes now to buy the same weight of onion i.e., 100 kg. Because I am using an example of 100 rupee note so let me convert this prices on 100 rupee scale. Suppose in 2001 the price of 100 kg onion was 100 rupees i.e., it took 100 rupee to buy 100 kg of onion. But in 2010 to buy that same 100 kg onion you will require to pay 600 rupees. That means, in 2001 one 100 rupee note was buying 100 kg onion, but in 2010 it requires six 100 rupee notes to buy that same 100 kg onion! That means RBI's 100 rupee note has lost 83% of its purchasing power in 10 years time. 100 rupee note is worth only 17 rupees in 2010. RBI is promising that they are giving us 100 rupee but actually they are giving us only 17 rupees!!!  Now that is one big broken promise.

Table 1: Onion Price

   










RBI broke its promise and central government is not guaranteeing anything to see that RBI keeps it promise to pay its citizen the printed amount of money. So they are also cheating upon Indian citizens. Actually it is a partnership between the government and banks to rip its citizens off of their hard earned money through inflation.  

Conclusion
Every citizen of India should punish the RBI and Indian government for this heinous crime of diluting the purchasing power of peoples' income. By reducing the real income of its citizens they are lowering the standard of living of its hard working citizens; they are making most of its citizens poor and helpless. They are killing many poor people who are living on the margin. Banksters and Indian government are murderers of its own people. This is their crime against the humanity and they should not go without punishment for this cruel crime.

Instead of wasting their time in movements like Lokpal bill, Indians need to bring RBI and Government in the people's court for their crime of inflation. Citizens need to vote against the State (i.e., against all political parties because they all are same) to dismantle it while simultaneously dismantling the RBI. History tells us that no government and banks have kept their promises. Giving all the powers in the hand of government (printing money through RBI) and banks (money deposits) and then expecting that they will not abuse that power is naivety. We need to take that power back in our hand by removing the State and saving and investing our money in hard assets like gold, silver, home, land, consumer durable goods, our and our family's lives etc. Unless and until Indians do this they are going to be ripped off by their government and banks.