RBI chief Urjit Patel to explain demonetisation to Parliamentary Panel today

The committee had asked the RBI chief on January 8 to respond to a set of questions on the currency ban and appear before it

RBI chief Urjit Patel to explain demonetisation to Parliamentary Panel today

Reserve Bank of India Governor Urjit Patel will be addressing Parliamentary Panel's questions on the decision of demonetisation and its effect on the economy today.

Reportedly, he might be asked about the steps the RBI took to deal with the cash crunch which ensued following the sudden withdrawal of 500 and 1000 rupee notes from the country since the midnight of November 8, as announced by Prime Minister Narendra Modi.


Furthermore, representatives of Indian Banks Association, State Bank, Punjab National Bank and Oriental Bank of Commerce are expected to be present at the meeting, where representatives of the Finance Ministry will also brief the members of the Standing Committee, headed by senior Congress leader Veerappa Moily.

It is to be noted that the committee had asked the RBI chief on January 8 to respond to a set of questions on the currency ban and appear before it.

Newly-appointed RBI-chief has been under opposition fire since the cash crunch started, and is also expected to appear before parliament's Public Accounts Committee regarding the same on January 20.
The questions have been targeted on RBI's autonomy, which opposition has claimed, has been compromised by the bank. This came after RBI wrote that the government had "advised" it to scrap 500 and 1,000-rupee notes on the November 7 -- a day before the announcement was made.


The demonetisation decision had led to the chaos outside banks and ATMs and disrupted 86 per cent of currency.