Decision without homework, India not prepared for digitisation of cash, says K V Thomas

We have called the RBI governor and officers from the finance ministry before the panel. PAC members have been asked to prepare questions that will be sent to RBI and concerned officers. We will ask why the demonetisation decision was taken, how much black money was in circulation, how many Rs 500 and Rs 1,000 notes were in circulation, what steps have been taken to print new currency notes, whether all the old currency will be replaced, whether digitisation will also go along with it, and whether they are technologically prepared for digitisation.

What feedback have you got on demonetisation?

Personally, I feel that the prime minister took a decision without homework. Somebody might have misled him. Demonetisation happened on two earlier occasions. But when demonetisation takes place, equivalent currency is made available to the public. Here what happened is that not only is equivalent currency not available but even what the government said – that in 50 days things will become normal – is not happening. We are given to understand that even by May, things may not become normal.

Why has the committee taken up the matter suo motu?

We can take up any matter suo motu. We have taken up issues connected with finance earlier too. That is why none of members disagreed this time either. We are not questioning the decision of the government. We are going to find out why the government has gone for demonetisation, whether adequate preparations were made.

What is the stand of the BJP members in the PAC?

Everybody is for it [taking it up]. We discussed the matter in a meeting and decided together to take it up. We did not call the meeting in December because the prime minister had promised on November 8 that at the end of 50 days, he would bring everything to normal. That is why we are calling the officers in the second week of January.

Do you also plan to call the chiefs of public sector banks?

After the examination of the RBI governor and secretaries concerned, the PAC will decide its next course of action. It will depend on the answers we get.

How do you view the government’s handling of demonetisation?

The government has made changes in policy one after another. The prime minister said everything will be normal after 50 days. The finance minister now suggests that the government will not release the entire currency equivalent to old currency as some will be digitised. The question is whether India had made adequate preparations for digitisation. We are not prepared. Fifty per cent people do not have even bank accounts; people do not how to handle e-banking.

The Department-Related Committee on Finance is also examining demonetisation. Is that not duplication?

We have always been going together on many issues. Even on the issue of nonperforming assets in banks, both the PAC and the finance committee had called the RBI governor… We have said we will examine the monetary situation in the country, they have put it as demonetisation.

When will you submit the report?

We want to submit it when the Parliament session begins.

As an Opposition MP, do you agree that the Opposition has not bee united on demonetisation?

There was a by and large unity of the Opposition parties except when Rahul [Gandhi]went to meet the PM. Some parties said he went without consulting them. Rahulji went to the PM on the burning issue of farmers. There could be some misunderstanding. But otherwise the Congress was able to unite Opposition parties, bringing Trinamool Congress and CPM together, AIADMK and DMK together, SP and BSP together. Even the BJD was coming to us.