Demonetisation hit currency flow but will normalise soon: Urjit Patel

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.

Demonetisation hit currency flow but will normalise soon: Urjit Patel

In his second appearance before the Parliamentary Panel, Reserve Bank of India Governor Urjit Patel on Friday told the Public Accounts Committee that though the cash flow in the country was hit by demonetisation, it will normalise soon.

He told the PAC that the situation in urban areas was "almost normal", and efforts were on to improve the cash flow to rural and remote areas in the country. Patel said, "It will take a few more weeks for the situation to improve in rural and remote areas," reports quoted its sources.


NDTV in its report quoted RBI chief as saying, "The common man suffered, marriages faced problems and people died."



According to the reports, "The organisation is also working on bringing down transaction costs of digital payments," Patel informed the committee.

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. In response, Patel said that he has information on the issue and the matter was being investigated by the Financial Intelligence Unit and the Income Tax department.

Reports quoted sources as saying that Demonetisation has short term impact on GDP and it will have a positive impact in the middle and long term.







On Wednesday, the RBI Governor had told the Parliamentary Standing Committee on Finance that the new currency notes, worth Rs 9.2 lakh crore, were introduced into the financial system post demonetisation.

Prime Minister Narendra Modi, in a surprise move on November 8, demonetised Rs 500 and Rs 1000 notes in order to curb the menace of black money, sucking out 86 per cent of cash currency in circulation in the country.