RBI Governor Urjit Patel to Parl panel: Rs 9.2 lakh cr in new currency introduced

The RBI Governor is also scheduled to appear before the Public Accounts Committee of Parliament on the same issue on January 20.

By: Express Web Desk | New Delhi | Updated: January 18, 2017 6:58 pm
Urjit Patel, RBI, Reserve Bank of India, Urjit patel demonetisation, Urjit patel parliamentary panel RBI Governor Urjit Patel. Express Photo

Reserve Bank of India Governor Urjit Patel on Wednesday reportedly told the Standing Committee on Finance panel members that around Rs 9.2 lakh crore in new currency have been introduced, as reported by PTI. Patel was briefing the standing committee on finance over the demonetisation issue and its impact on the economy, steps taken by the central bank to deal with the cash crunch post withdrawal of Rs 500 and Rs 1,000 notes. He reportedly also told the panel that the discussion about demonetisation began between the government and bank early last year.

According to the RBI statement, the government wanted it to consider demonetisation of high value currencies “to mitigate the triple problems of counterfeiting, terrorist financing and black money” on 7 November. The central board took a decision on this and the government announced the demonetisation on 8 November.

Senior bureaucrats, including Department of Economic Affairs Secretary Shaktikant Das, Banking Secretary Anjuly Chib Duggal and Revenue Secretary Hasmukh Adhia, and top bank honchos like Chanda Kochhar of ICICI Bank and Usha Ananthasubramanian of Punjab National Bank are also to appear before the committee headed by Congress leader Veerappa Moily.

The RBI Governor is also scheduled to appear before the Public Accounts Committee of Parliament on the same issue on January 20.

(With inputs from ANI)

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  1. J
    Jai hind
    Jan 18, 2017 at 3:50 pm
    Bakth conceded a ...Goaal !!
    1. C
      C S
      Jan 18, 2017 at 2:33 pm
      Prior to demonitisation the total value of notes in circulation was Rs 17.7 trillion. Of this, the value of Rs 500/1000 notes invalidated on Nov 8 amounted Rs 15.4 trillion or 87 percent. The RBI’s weekly statement for week ending Jan 6, gives the value of total notes in circulation as Rs 8.7 trillion (Ref: statement T1). This would comprise of Rs 2.3 trillion of low value currencies which were not demonitised, some amount of old Rs 500/1000 notes not returned to the banks and the value of new currencies issued between Nov 8 and Jan 6. Taking the value of old notes not returned at say, 0.5 trillion, the value of new notes inducted in the last two months would not be more than Rs 6 trillion. Therefore, the figure given by the governor to the parliamentary panel, of Rs 9.2 trillion of new notes inducted is not credible. Thus out of Rs 15.4 trillion demonitised, only 40 percent have been remonitised. The economy has been throttled by paucity of currency to the extent of 60 percent even after 9 weeks of the demonitisation. Historically the currency in circulation has been growing at a rate of 15 percent p.a and accounted for 12 percent of the GDP. As against that the currency in circulation today cannot be more than 6-7 percent of the GDP. One can therefore imagine the damage it might be doing to the economy. The demonitisation, though well intended, has taken away millions of jobs, mostly in the unorganised sector. Had the RBI governor apprised the PM of the delay in remonitising the currency, perhaps the exercise would have been done differently reducing its pain level to different sections of people.
      1. G
        G. R.
        Jan 18, 2017 at 1:56 pm
        These unscrupulous corrupt politicians like Saugat Roy, Veerappa Moiley and others would like to interrogate the RBI governor on demo. These set of politicians only shouting that the RBI's autonomy is getting eroded. Look at them what they are doing, just because they are in opposition parties. Are they going to set any thing right? No. wasteful energy, resource and public money.
        1. g
          Jan 18, 2017 at 1:36 pm
          What the PAC is trying to prove? On 8 nov PM himself came to public and announced the move and thereby he has shouldered the responsibility for the move. What more evidence PAC wants.
          1. S
            Jan 18, 2017 at 12:37 pm
            Abolish this useless PAC as its headed by political party members. What purpose it serves? When UPA was in power, PAC refused to invite MMS to question on 2G scam.
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