The Reserve Bank of India (RBI) has infused around 60 per cent of the total banned currency notes after demonetisation.
The RBI Governor Urjit Patel told a parliamentary standing committee on finance on Wednesday that the central bank had infused new currency notes worth around Rs 9.2 lakh crore into the system. Currency notes estimated around Rs 15.4 lakh crore were withdrawn when the Centre announced demonetisation on November 8, 2016. Most members in the finance committee, including former Prime Minister Manmohan Singh and panel chairman M Veerappa Moily, spoke in favour of protecting the autonomy of the RBI as an institution but said that accountability from its governor must be sought as the note ban had impacted a large of number of people.
Though the members found Patel’s explanation lucid, they were miffed that he did not answer queries like how much money had been deposited in banks after demonetisation or by when the cash supply situation would ease across the country. “Patel came across as a professional in his brief… but we had a lot of issues to raise,” said an Opposition member.
The finance committee meeting was significant as key finance ministry officials, including Economic Affairs Secretary Shaktikanta Das, Revenue Secretary Hasmukh Adhia briefed the panel.
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