RBI replaces 60% of banned currency: Rs 9.2 lakh cr remonetised till date
RBI replaces 60% of banned currency: Rs 9.2 lakh cr remonetised till date: Parliamentary panel members say governor was silent on the amount that has come back
January 19, 2017
Questions & answers
Media reports about the proceedings of the Parliamentary Standing Committee on Finance yesterday (January 18), exposed the ignorance of the purpose and content of the proceedings among analysts, more than the lapses in the planning and implementation of the withdrawal of Rs1000 and Rs500 currency notes from circulation.
Even before the meeting of the Standing Committee, an impression was created as if RBI Governor was appearing for a ‘qualifying’ or ‘selection’ examination and several outlets ‘leaked’ different versions of the question paper. 10 to 18 questions were circulated in the media. Some of the leaked questions were really asked. From cost of printing new notes to ‘when you expect normalcy in currency circulation?’, it is reported, Urjit Patel was grilled and occasionally a loving Manmohan Singh helped him with answers or asked him to skip tough questions.
Perhaps, just as, now in hindsight, we feel that the so called ‘demonetization’ could have been managed better by planning the linkages, analysts will now pick up holes in the conduct of the proceedings of the Standing Committee! If these wise men had allowed to function the Parliament in November 2016 and asked some of these questions and suggested some midway corrections it would have immensely benefited the nation. Even now they have not done their homework. Otherwise, they would not be talking about ‘replacement’ of withdrawn currency notes. If 60 per cent of the value of SBNs(Specified Bank Notes) have been ploughed back to the system, that will definitely take care of the cash needs of India. May be, some realignment of denominations and reaching out to geographical areas not adequately served by bank branches will be necessary.
M G Warrier, Mumbai