All measures being taken to ease citizen’s pain: RBI guv Urjit Patel on note ban

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November 27, 2016

MUMBAI – RBI governor Urjit Patel on Sunday said the central bank was taking necessary actions to “ease the genuine pain of citizens” in the aftermath of the demonetization, his first statements in this regard since the government announced the move more than a fortnight ago.

November 27, 2016

MUMBAI – RBI governor Urjit Patel on Sunday said the central bank was taking necessary actions to “ease the genuine pain of citizens” in the aftermath of the demonetization, his first statements in this regard since the government announced the move more than a fortnight ago.

 “Liquidity in the banking system has been increased; the intent is to normalize things as soon as possible. The Reserve Bank of India (RBI) and government are getting printing presses to work at capacity to make the new notes available to meet demand,” the governor said.

Breaking his long silence since Prime Minister Narendra Modi’s surprise announcement on November 8, Patel said the central bank was monitoring the situation on a daily basis.

“Currency is available and banks are working in a mission mode to take them to branches and ATMs.”

In the first week after 1,000 and 500 notes were made illegal tender, people thronged banks and ATMs to exchange their notes for valid money, in many cases waiting for hours before being able to get some cash.

The new Rs 500 and Rs 2,000 series soon came into circulation, but cash circulation still remains a problem.

The government said the demonetization decision was made as a part of a crackdown on black money in the country. The measure is also aimed at countering fake Indian currency note rackets.

“New Rs 500 and Rs 2,000 currencies have been designed to make them hard to counterfeit,” Patel said, while he also urged people to start using cash substitutes like debit cards.


Courtesy: HT