Taking steps to ease people’s pain: RBI Guv Jaitley defends Urjit after Ramesh’s barb on note ban
MUMBAI: Breaking his silence over the demonetisation issue, Reserve Bank of India Governor Urjit Patel said on Sunday the central bank is monitoring the situation on a daily basis and taking all necessary actions to “ease the genuine pain of citizens” with a clear intent to normalise the things as early as possible.
Patel also said the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100% “because of the large increase in deposits of banks on account of the return of ₹1,000 and ₹500 notes” and the decision would be reviewed immediately once the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds which they have promised to do.
In an exclusive interview to PTI, Patel said the situation arising out of the decision to with being monitored on a daily basis and the printing presses have started to rebalance the production of new notes.
He also urged the people to start using cash substitutes such as debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India “leapfrog into a less cash-use economy at par with more developed nations.”
“We are also urging banks to make a big push with POS (Point of Sale) machines with traders so that debit card use becomes NEW DELHI: Finance minister Arun Jaitley defended Reserve Bank of India (RBI) governor Urjit Patel on Sunday after Congress leader Jairam Ramesh criticised him for misleading the country on demonetisation and sought his resignation for sacrificing the autonomy of the central bank.
Jaitley said Ramesh’s allegation was an “unfair attack” and politicians should refrain from making comments on those who cannot defend themselves.
“An unfair attack by Jairam Ramesh on the RBI Governor. Must politicians attack those who can’t defend themselves in the same tone?” the finance
In an article written in National Herald, Congress spokesperson Ramesh alleged that the RBI was kept in the dark by the government about its surprise demonetisation move.
“Urjit Patel is either guilty of misleading the nation about RBI’S preparedness on demonetisation or has sacrificed the autonomy of RBI. Either way, he should resign,” Ramesh
The Congress Rajya Sabha MP said the RBI was the monetary authority of India and was solely responsible for making bank notes available to all.
“If RBI headed by Patel gave its approval to the Prime Minister’s demonetisation plan, then ostensibly RBI was confident of making currency notes