Explain demonetisation, your role, flip-flops, secrecy: Parliament panel to RBI Governor Urjit Patel

Urjit Patel to appear before PAC on January 28, list of 10 questions sent

Written by Anand Mishra | New Delhi | Updated: January 9, 2017 1:50 pm
RBI, Reserve Bank of India, RBI Governor, urjit Patel, PAC, PUBLIC Accounts Committee, KV Thomas, demonetisation, RBI demonetisation, narendra Modi, PM Modi demonetisation, Piyush Goyal, demonetisatised money, demonetisation debates, Parliament panel to urjit patel, india news, indian express news The PAC has also sought to know how much of the currency was demonetised, and how much has returned into the banking system. (File photo)

THE PUBLIC Accounts Committee (PAC) headed by senior Congress leader K V Thomas, which has asked Reserve Bank of India (RBI) Governor Urjit Patel to appear before it on January 28, has asked him 10 probing questions on the demonetisation issue — from the decision-making process to the level of RBI’s involvement, impact on the economy, and “flip-flops” in RBI regulations over the last two months.

WATCH VIDEO | Rs 14 Lakh Crore In Old Notes Back With Banks, Micro-Small Scale Industries Suffer Job Loss

In the questionnaire sent on December 30, accessed by The Sunday Express, the parliamentary panel has asked the RBI Governor why he should not be prosecuted and removed for “abuse of power of office” if there are no laws that impose restrictions on withdrawal of cash. The PAC has also sought to know how much of the currency was demonetised, and how much has returned into the banking system.

The list of questions:

Q.Union Minister Piyush Goyal has said on the floor of the House that the decision to demonetise was taken by the RBI and its Board. The government merely acted upon this advice. Do you concur?

Q. If the decision was indeed RBI’s, then when exactly did the RBI decide that it was in India’s best interests to demonetise currency?

Q. What was the exact rationale laid out by the RBI for this decision to invalidate Rs 500 and Rs 1,000 notes overnight?

Q. RBI’s own estimates show fake/ counterfeit currency to be a mere Rs 500 crore. India’s cash to GDP was 12%, lower than Japan (18%) and Switzerland (13%). High denomination notes as a share of currency was 86% in India, but 90% in China and 81% in US. So, what was so alarming that the RBI decided India needed to demonetise suddenly?

Q. When was the notice sent to the RBI Board members calling for an emergency meeting on November 8? Which of them attended this meeting? How long the meeting did last? And where are the minutes of this meeting?

Q. In the subsequent note sent to the Cabinet recommending demonetisation, did the RBI explicitly mention that this decision would mean invalidating 86 per cent of the country’s currency and its attendant cost? How long did the RBI say it would take to remonetise?

Q. The RBI notification of November 8, 2016 under Section 3 c(v) issued a restriction on withdrawal from a bank account over the counter to Rs 10,000 per day and Rs 20,000 per week. There was a similar limit of Rs 2,000 per day in an ATM. Under what law and powers of the RBI, were these limitations imposed on people to withdraw their own cash? What gave the powers to the RBI to ration currency notes in the country? If there are no laws that you can cite, why should you not be prosecuted and removed for abuse of power of office?

Q. Why have there been so many flip-flops in RBI regulations over the past two months? Please give us the name of the RBI officer who came up with the idea to ink people for withdrawal? Who drafted the notification on marriage related withdrawal? If it was not the RBI that drafted these but the government, is the RBI now a department of Ministry of Finance?

Q. How much exactly was demonetised and how much has been deposited back in old currency? What was the expectation of notes to be extinguished when the RBI advised the government to demonetise on November 8?

Q. Why has the RBI refused to reveal information under the RTI, citing inane reasons such as fear of personal injury? Why is the RBI not providing information under RTI to queries that come?

On Friday, the Rajya Sabha Standing Committee on Subordinate Legislation also questioned Patel as well as RBI Deputy Governors N S Vishwanathan and R Gandhi on demonetisation. According to sources, JD(U) member Ali Anwar Ansari asked if RBI was informed in advance about the demonetisation decision. Stating that not taking steps to avoid inconvenience to people amounted to “criminal negligence”, he said it was all the more dangerous if RBI was not consulted in time.

“We raised issues about demonetisation and how they coped with it… the impact, problems in implementation, problems faced by the banking sector and how to fix all that… Many questions did not get addressed,” said a source who attended the meeting.

“The members also asked how the demonetisation decision was taken on November 8. It was a constructive dialogue… We asked probing questions,” said a member of the panel.

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First Published on: January 8, 2017 5:02 am
  1. A
    Abhinav Gour
    Jan 8, 2017 at 6:38 am
    This committee does not have any credibility
    Reply
    1. A
      Abhinav Gour
      Jan 8, 2017 at 3:42 am
      Sack this urjit patel who was placed by modi because he could damce to modis tunes
      Reply
      1. A
        Arcayp
        Jan 8, 2017 at 3:41 pm
        The questionnaire should be specific to bring out specifics of the decision making process along with the board meeting details, communication between Finance Ministry/PMO with RBI leading to the decision, the basis and reason for imposing such a harsh decision on the country with severe implications on the poce and economy, what kind of empirical studies were done on the cost benefit of imposing it, what planning were done for a seemless execution was done. India has a right to fix responsibility for all the suffering caused by the decision and the aftermath implications for the economy. Urjit Patel stands guilty for this insane imposition and surrendering RBI's prerogative to the Political masters and politically motivated unequal distribution of money to banks specifically to states going for election soon.
        Reply
        1. J
          Jim
          Jan 8, 2017 at 7:38 am
          Fkall Qs intended tip waste precious time of everyone.lt;br/gt;Cheap politics
          Reply
          1. J
            Jim
            Jan 8, 2017 at 9:14 am
            If these b*stards had asked similar Qs to UPA1 then we would not have had the embarrment called UPA2
            Reply
            1. J
              Jim
              Jan 8, 2017 at 9:13 am
              No wonder sita had to undergo agneepareeksha in this country full of hypocrites
              Reply
              1. J
                Jim
                Jan 8, 2017 at 9:17 am
                Press utes also have to explain, esearch and give better alternativeslt;br/gt;lt;br/gt;They can't just lazily question.
                Reply
                1. J
                  Jim
                  Jan 8, 2017 at 9:21 am
                  Then there are many Qs UPA has to answer. In fact MMS should be inn jail
                  Reply
                  1. V
                    Virupakshayya
                    Jan 8, 2017 at 2:10 am
                    Entire pundit legacy,spoiled self reliance in defence by shouting induchina behi,behin,lt;br/gt;Now these people qution nationalistgot.
                    Reply
                    1. M
                      MyTake
                      Jan 8, 2017 at 10:02 am
                      If they could ask proper questions to themselves, Chinese would not be coming and having picnics across the borders!
                      Reply
                      1. P
                        PCKULKARNI
                        Jan 8, 2017 at 3:44 am
                        Now Urjit Patel will take dictation from Shaktikant Das
                        Reply
                        1. S
                          Santanu Das
                          Jan 8, 2017 at 4:34 am
                          Excellent. It's Speck's the minds of the Nation. Thanks.
                          Reply
                          1. S
                            SubbuI
                            Jan 8, 2017 at 9:07 am
                            RBI GOVERNOR MR PATEL APPEARS TO BE A DEDICTED STAFF BELOW THE LEVEL OF DEPUTY SECRATARY UNDER FINANCE MINISTRY AND ALSO RESPOSIBLE FOR REPORTING ON CALL TO PMO.HE MIGHT HAVE BEEN GIVEN AUDIANCE FEW TIMES ON PERSISTANT REQUEST TOCTHE DICTATOT NALAYAK NMODI MAY BE ONCE BEFORE 8 TH NOVEMBER AND MAY BE ONCE DURING THE 50 DAYS OF SUSPENCE PERIOD.SOME LOWER LEVER OFFICER IN CO ORDINATION WITH SOME ANOTHER LOWER LEVR OFFICER IN FINANCE MINISTRY MUST HAVE TAKEN THE 80 ODD IMPORTANT FLIP FLOPS OR CALL IT AMENDED ORDERS IN THE CRITICAL 50 DAYS.BOTH THIS DECESION MAKERS ARE RECENTNLY TRASFERED FROM GUJARATH SO TO SAY " SAB KUTCH GARELO MAMLA THA".JIO MODI- JIO NEWLY REDEFINED RBI-SATHYANAAZ INDIAlt;br/gt;BARBAATH BHARATH KA. JIO MODI.JIO BJP. JIO RSS.
                            Reply
                            1. S
                              SubbuI
                              Jan 8, 2017 at 9:17 am
                              REDIFINED RESERVE BANK OF INDIA AFTER 8TH NOVEMBER 2016lt;br/gt;1) REVERSE BANK OF AKANDA BHARAHlt;br/gt;2)RESERVE BANK OF GUJARATH lt;br/gt;3)MODI MANN MAANI CREDIT BANKlt;br/gt;4) FOOLISH BANK OF HINDUSTHANlt;br/gt;5) CONFUSED BANK OF INDIAlt;br/gt;6)DIWALA INCORPORATED BANK OF INDIAlt;br/gt;7) PSHYCO BANK OF INDIAlt;br/gt;8) SAFRON BANK OF INDIA
                              Reply
                              1. V
                                vvvvv
                                Jan 8, 2017 at 7:42 am
                                Mr. Urjit Patel also brother in law of Mukesh ambani (Mukesh Ambani wife Real Brother in law).. Now our janta understandingall about Modi .. Suit boot ki sarkar...Agar Janjati ya janta tum kabi kaab may be PM anhi ban sakhtha tah ... only this Ambani and Sahara Make chai wla as PM... Very dangerous to india Democracy .... Jai Hind
                                Reply
                                1. A
                                  Abhijit Bhattacharya
                                  Jan 8, 2017 at 4:30 am
                                  No question will be answered. The bhakt brigade and the troll army would get into action creating irrelevant noise to avoid answering. Parliament won't be allowed to function. Other tensions will be created to divert people's attention. The nation is heading for a disaster
                                  Reply
                                  1. B
                                    Biju Joseph
                                    Jan 8, 2017 at 9:55 am
                                    These questions were supposed to have been asked in the parliament and not to a government servant who take his ry and reports to his boss. Opposition lost there golden opportunity to question the government and offer alternate ideas during the winter session. lt;br/gt;lt;br/gt;By the by, is there is any law in this land so that RBI governor can be punished for rationing the currency ? Fortunately NO. Better panel asks questions among themselves, have coffee and leave.
                                    Reply
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                                      Ashok Agarwal
                                      Jan 9, 2017 at 10:57 am
                                      The decision was uncalled for. It is miracle that country didnot see civil war, looting etc.On the other side situation was worse in last 35 years on border.lt;br/gt;Ashok Agarwal
                                      Reply
                                      1. A
                                        AKS
                                        Jan 8, 2017 at 12:33 am
                                        What is contribution of PAC in growth of India. Did PAC ever called Manmohan Singh to ask why he should not be prosecuted for failing to prevent looting of Treasury. The question over US economy having 81% high denomination notes is wrong. ask change of USD 100 and see whether you get it. you hardly get more than $20 note. lt;br/gt;lt;br/gt;Useless folks are trying to scare RBI. People understand it fully and their patience fully displays it.
                                        Reply
                                        1. A
                                          Ajit pillai
                                          Jan 8, 2017 at 4:20 am
                                          Have your ever stated ke serves in JandK or northeast .lt;br/gt;All these "Patthar FEKUs" have vanished. All demonstrators vanished !!lt;br/gt;Gilani burning old notes in his backyard......
                                          Reply
                                          1. A
                                            Ajit pillai
                                            Jan 8, 2017 at 4:25 am
                                            Kabira should reply on lt;br/gt;"PATTHAR FEKUs" of JandKlt;br/gt;unless he was one of them !!!
                                            Reply
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