SME Times News Bureau | 18 Jan, 2017
Reserve Bank of India (RBI)
Governor Urjit Patel, who is to appear before the Parliaments
standing committee on finance on Wednesday, will face several
questions from the members on demonetisation, the most pertinent
being if the central bank's autonomy has been compromised.
According
to one of the members of the committee, besides the RBI Governor,
Finance Ministry officials will also be present at the meeting.
The
chairperson of the Standing Committee on Finance is M. Veerappa
Moily.
Prime Minister Narendra Modi on November 8 had
announced banning Rs 500 and Rs 1,000 currency notes.
The
government "advised" the the central government on November
7 to demonetise the higher currencies and the RBI's board recommended
it on the same day the Prime Minister announced it.
"The
RBI governor will be asked every question pertaining to
demonetisation, including autonomy of the central bank," one of
the panel members told IANS.
Among the other major concerns
of the committee include whether the decision to demonetise higher
currencies was legal, and whether cashless economy was feasible in a
country like India where more than 90 per cent transactions are done
in cash.
The other questions include if the banking system in
the country was well equipped to carry out the government's
demonetisation policy.