More reports on: RBI

Demonetisation talks began early in 2016: RBI chief

19 January 2017

Reserve Bank of India Governor Urjit Patel is learnt to have told the parliamentary panel on demonetisation that discussions between the central bank and the government on the process began early last year.

Congress members of the committee led by Veerappa Moily asked questions like whose decision it was to withdraw high currency notes and also about autonomy of the RBI, reports said.

Bharatiya Janata Party members however did not raise too many questions during the meeting, they added.

The questions put up by the panel ranged from the total amount of money that came back during the demonetisation period to the total amount of new bills of Rs500 and Rs2,000 that were printed and sent to the banks.

Former Prime Minister Manmohan Singh, one of the members who had described demonetisation as a ''monumental management failure'', too raised questions on the issue.

Patel told the Parliament standing committee on finance over that discussions between the central bank and the government on the demonetisation issue had been taking place since early last year.

The finance ministry has sought time from the panel to provide answers to the queries raised during the meeting in which the finance secretary made a presentation before the committee, when members seemed not too satisfied with the replies.

The crucial meeting was held to discuss the "demonetisation of Indian currency notes of Rs500 and Rs1,000 and the impact thereof".

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

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