Sunday, 22 January 2017

Parliamentary panel summons RBI governor Urjit Patel on demonetisation move

MUMBAI/NEW DELHI: A parliamentary committee probing the government's decision to scrap high-value bank notes+ , has sent Reserve Bank of India governor Urijit Patel a list of questions on the demonetisation process, and has asked him to appear before it on January 20.

The Public Accounts Committee (PAC) has asked Patel to explain how the decision for demonetisation was taken, and for details on its impact on the country's economy, PAC Chairman and senior Congress member K V Thomas told Reuters.
The PAC has asked Patel to provide details on the value of currency that has been returned to the bank, the quantity of "black money" it has received and the amount of new currency released so far, Thomas said.

"We had decided to call the RBI governor sometime in December but because the Prime Minister had asked for 50 days, we decided to postpone it to sometime January," Thomas told Reuters. "We did not want to give it a political colour."
The PAC has also called other finance ministry officials, including Revenue Secretary Hasmukh Adhia and Finance Secretary Ashok Lavasa, Thomas said.

Urijit Patel is under fire+ from some politicians over shortages of replacement currency and restrictions on depositing old notes that have caused long queues at banks and ATMs. He's already set to testify before another parliamentary committee.

Pressure on the central bank and Patel has grown since Prime Minister Narendra Modi stunned the country on November 8 by announcing the withdrawal of legal tender for the old 500- and 1,000-rupee notes, removing 86 percent of the currency in circulation in a bid to crack down on the "shadow economy".


No comments:

Post a Comment