RBI Governor faces tough questions on demonetisation

NEW DELHI: RBI Governor Urjit Patel today faced some tough questions from MPs as he could not set a time frame for return of normalcy in the banking system even as the central bank asserted that Rs 9.2 lakh crore or 60 per cent of demonetised currency has been replaced.

Patel also could not give a definite number of old Rs 500 and Rs 1000 bills returned post demonetisation as RBI was still tabulating those.

Sources said the Governor was spared a tough grilling at the meeting of the Parliament’s Standing Committee on Finance as senior MPs including former Prime Minister Manmohan Singh intervened to say RBI as an institution needs to be respected.

Congress MPs like Digvijay Singh wanted Patel to be specific in his replies on lifting of cash withdrawal restrictions and wanted to follow through with tougher questions but were prevented by Singh and others, they said.

Patel, flanked by Deputy Governors R Gandhi and S S Mundra, explained to the members that discussions for demonetising high value currency notes between the Government and the RBI had been going on since early 2016, and the central bank was in agreement with the Government on the objective behind scrapping of the Rs 500/1000 notes. (AGENCIES)