Urjit Patel to PAC: Cash situation to normalise soon

urjit patel

New Delhi, January 20: Reserve Bank of India Governor Urjit Patel on Friday assured the Public Accounts Committee (PAC) that the cash crunch following November 8 demonetisation drive will normalise soon.

Earlier, on Wednesday Patel had failed to disclose the amount of money that returned to the banking system post demonetisation to the Parliament’s Standing Committee on Finance.

As per the sources, RBI chief on Friday also informed the PAC that Financial Intelligence Unit and Income Tax Dept are looking into abnormal deposits in banks after November 8. He also cited the special efforts being taken by the central bank to ease the situation of cash in the rural areas, besides the efforts to normalise situation in urban areas.

The sources further revealed that when one of the PAC members told Patel that there was a huge mismatch between the cash deposited and the actual cash in the cooperative banks, RBI governor said that he has information on the issue. He added, the matter is being investigated by the Financial Intelligence Unit-India (FIU-IND).

Even after 70 days of demonetisation led by Prime Minister Narendra Modi, cash situation in the country has not normalised. PM Modi stunned everyone on November 8 when he scrapped 86 % of cash in the country in form of Rs 500 and Rs 1000 currency notes.

Following the decision, the RBI put restrictions on withdrawal of cash from the ATMs and banks as there was large scale shortage of new currency notes.

Prime Minister Narendra Modi had asked for 50 days deadline to ease the situation in country, however even after 20 days of passage of that deadline, both central government as well as RBI has kept silence on total deposits and currency situation in the country.

Wefornews Bureau

 

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