Parliament panel to grill RBI governor Urjit Patel over notice ban as of late

Standing committee on finance to additionally focus on RBI autonomy and citizen's rights

Reserve bank of India (RBI) Governor Urjit Patel (pictured) will face questions on demonetisation and its aftermath when he appears earlier than the Parliament’s standing committee on finance on Wednesday.

Opposition birthday celebration contributors on the panel, mentioned sources, were not satisfied with the paperwork RBI and the finance ministry had given the committee, in beef up of high Minister Narendra Modi’s November 8 announcement banning Rs 500 and Rs 1,000 currency notes.

a big concern of those participants used to be whether RBI’s autonomy used to be compromised by using the observe ban decision. every other issue could be if the decision violated citizens’ rights over their felony cash in banks, assured by using RBI, with withdrawal limits. additional, the individuals would like to know if the cashless economy agenda being pushed by way of the Centre was once feasible as a couple of major economies equivalent to the usa, Japan, the uk and Singapore have still no longer long past completely cashless.

contributors would also ask questions on whether the banking gadget was geared up to enforce the word ban. the fact that at the least one hundred individuals reportedly misplaced their lives in the aftermath of the note ban and if their family got compensation would also be thrown at the RBI chief, sources mentioned. “The notice ban has messed up the economy. all the issues of the public could be raised on the meeting,” a lawmaker informed this newspaper, on condition of anonymity.

the federal government had steered the relevant bank on November 7, 2016, to believe the observe ban and RBI’s board advisable the identical on November 8, hours prior to Modi announced the note ban. “We want to comprehend how many new foreign money notes have been printed and what is the cash supply scenario,” said some other member. “We would like to understand the impact of note ban on industrial manufacturing, agriculture and resultant job losses.”

consistent with the documents submitted earlier than the panel via RBI and the ministry, the Centre used to be alarmed on the spurt in the circulation of counterfeit Rs 500 and Rs 1,000 notes and needed to take immediate action. the data provided to the panel confirmed a rise of seventy six.4 per cent in the provide of pretend Rs 500 notes and 109 per cent in faux Rs 1,000 notes over the previous five years. Fearing that the infusion of fake currency via a neighbouring us of a contributed to terror funding and black money, the government opted for the be aware ban.

Estimating the fake forex in India at Rs 400 crore, the government file stated authorities had seized fake currencies value Rs 27.79 crore until September 2016. It was Rs 43.8 crore in 2015 and Rs 41 crore in 2014.

Author : Wealth Rrsearch