Urjit Patel interview: Demonetisation will result in a downgrade of growth for a short period of time.
The RBI added that there will be no limit on withdrawals from March 13 onward.
The RBI’s monetary policy committee on Wednesday voted 6-0, its third unanimous decision in a row since being established in September.
“All restrictions have been removed except on savings bank account of Rs 24,000 per week. This (removal of withdrawal limit) is also a matter of time,” he told PTI in an interview.
The RBI has faced flak after the government announced its decision to withdraw Rs 500 and Rs 1,000 notes on November 8, 2016 and the way the exercise was handled by the government and the central bank.
Many NRIs complained that they are not allowed to speak to officials who could at least listen to their grievances.
Bank credit to the infrastructure sector, which had been steadily sliding over the first eight months of the current financial year, has recorded its sharpest contraction of 6.7 per cent in November.
That’s what RBI says in 7-page note to House panel; agrees with Govt’s rationale to counter ‘FICN menace’.
Reddy was also critical of the way Governor and Deputy Governors is selected.
Reporting of the transactions in Integrated Computerised Currency Operations and Management System (ICCOMS) will be enabled beyond 9 till all the deposits are received and accounted for.
The clarification comes amid rumours in a segment of the media that the bank was likely to lose its banking licence, RBI stated further.
Reverse repo rate under the LAF remains unchanged at 5.75 per cent
With interest rates being cut after unexpected clampdown on cash, foreign investors will look for assurance from new RBI Governor Urjit Patel over monetary policy.
The apex bank further said that all regulated financial institutions should note that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans.
“How will the farmers buy seeds, fertilisers when they cannot exchange or deposit the Rs 500, Rs 1000 notes lying with them,” he asked.