This time RBI governor Urjit Patel broke his silence regarding Demonetisation and Remonetisation, infront of the parlimentary panel on Finance. According to the Members of the panel, Patel said that the Reserve Bank of India (RBI) had injected Rs.9.2 lakh crore worth of new currency notes after the demonetisation on November 8, 2016. He also said that consultations about demonetisation between the Government of India and RBI started in January 2016.
The Panel on Finance questioned the RBI chief on demonetisation. Patel failed to give any substantial figures for how many of the banned notes had been deposited into the banking system. "Patel was unable to give the numbers of how much money has come back in to the banking system" said committee member Saugata Roy, TMC MP.
More importantly he is not sure on when the cash situation would become normal according to the pannel members.
Patel also told the panel that consultations between the Government of India and RBI on demonetisation had began in January 2016. The RBI chief admitted that the central government wanted to scrap Rs.500 and Rs.1000 notes worth about Rs.15.4 lakh crore and asked the central bank on November 7, day before the demonetisation announcement made by Prime Minister Narendra Modi. The RBI board formally approved the recommendation on that day itself.
Patel will also appear before the Public Accounts Committee of Parliment regarding the issue of demonetisation on January 20.
Senior bureaucrats, including department of economic affairs secretary Shaktikant Das, Banking secretary Anjuly Chib Duggal and top banking heads such as Chanda Kochar of ICICI bank and Usha Ananthasubramanian of the Punjab National Bank will also appear before the Standing Committee on Finance which is headed by the former Union Minister M.Veerappa Moily. Former Prime Minister Manmohan Singh is one of the members of the panel.
The Panel on Finance questioned the RBI chief on demonetisation. Patel failed to give any substantial figures for how many of the banned notes had been deposited into the banking system. "Patel was unable to give the numbers of how much money has come back in to the banking system" said committee member Saugata Roy, TMC MP.
More importantly he is not sure on when the cash situation would become normal according to the pannel members.
Patel also told the panel that consultations between the Government of India and RBI on demonetisation had began in January 2016. The RBI chief admitted that the central government wanted to scrap Rs.500 and Rs.1000 notes worth about Rs.15.4 lakh crore and asked the central bank on November 7, day before the demonetisation announcement made by Prime Minister Narendra Modi. The RBI board formally approved the recommendation on that day itself.
Patel will also appear before the Public Accounts Committee of Parliment regarding the issue of demonetisation on January 20.
Senior bureaucrats, including department of economic affairs secretary Shaktikant Das, Banking secretary Anjuly Chib Duggal and top banking heads such as Chanda Kochar of ICICI bank and Usha Ananthasubramanian of the Punjab National Bank will also appear before the Standing Committee on Finance which is headed by the former Union Minister M.Veerappa Moily. Former Prime Minister Manmohan Singh is one of the members of the panel.