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Parliament Panel To Submit Demonetisation Report In Monsoon Session

How can a central bank governor keep saying for several months that it is counting the currency accepted at the bank counters with proper acknowledgment, preliminary checks for fake notes, rules restricting the amount of deposits and strict verification of source for high value deposits?He said RBI can not yet give the “specific number” of demonetized notes deposited.He, however, is learnt to have told the members that the counting of old currency is still underway and therefore no clear picture has emerged regarding the quantum of currency recovered till the aforementioned date. There are more than 15,000 staff at the RBI. “Incidents of terror have gone up, after stone pelting there is bullet pelting now, since you haven’t been able to count the notes you don’t know how much fake currency has been deposited, and as for digitisation, call drops are too common”, he is reported to have told Mr. Patel at the meeting.This statement came in response to a question raised by a member of the Parliamentary Standing Committee on Finance.Mr Moily later said that the Committee will present its report on demonetisation in the Monsoon Session.While the government banned the old series of Rs 500 notes in addition to the Rs 1,000 denomination, it re-introduced a new series of Rs 500 from November 10, two days after announcing the decision.Patel failed to answer many questions put by members, including Chairman Moily. “Balance sheets are ready by June 30 and it is quite hard to believe that there is no assessment of how much currency came back, therefore one MP asked whether the figure would available by May 2019 [when the next General Elections are due] at least”, said a member who attended the meeting.Sources further revealed that the parliamentary panel has informed the apex bank that it must share the figures before it closes its books on June 30 and prepare its balance sheet for 2016-17.Along with Mr Patel, RBI Deputy Governor S S Mundra was also present at the meeting today. Interestingly, it was Singh who had rescued Patel from a tough grilling during the January meeting when he intervened to say that the central bank and the governor’s position as an institution should be respected.Members also asked questions about the vigil being maintained over the use of bitcoins.The RBI has also issued tenders for new machines for counting of the notes, the meeting was told.The agenda of the meeting is -Evidence of the represntatives of the RBI on the subject demonetisation and transformation towards digital economy and banking sector in India-Challenges and the way forward.