New Delhi: Reserve Bank of India (RBI) Governor Urjit Patel told the Parliamentary Standing Committee on Finance on Wednesday that the request for considering demonetisation came from the central government on November 7 and that the RBI board gave its recommendation the next day.
Trinamool Congress MP Saugata Roy, a member of the panel, told News18 that Patel didn’t give a definite answer to the query when will the banking system come back to normal.
When asked how much of the invalidated money had come back into the banking system as of December 31, the RBI governor said that since the physical counting and verification of the currency is still on, that answer was not available.
Roy said members of the committee asked the Governor if the autonomy of the RBI had been curbed, to which Urjit Patel said he didn’t think that was the case.
The central bank board recommended the move to invalidate 500 and 1,000-rupee notes on November 8. Prime Minister Narendra Modi announced the move the same evening in a nationally televised speech.
The Committee had a meeting with RBI and Finance Ministry officials on Demonetisation that was attended by Patel, officials from the Department of Economic Affairs, Financial Services and Revenue Department as well as bank officials.
The Governor made a presentation on Demonetisation followed by questions from Committee members on the move that invalidated 86% of currency in circulation.
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