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Rediff.com  » Business » House panel to discuss note ban impact with Urjit Patel

House panel to discuss note ban impact with Urjit Patel

Last updated on: December 02, 2016 13:11 IST

Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das have been summoned by the PAC.
Amit Agnihotri/Business Standard reports.

Parliament's Public Accounts Committee has decided to summon Reserve Bank of India Governor Dr Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das in the first week of January to assess the impact of demonetisation.

"The panel will find out why demonetisation was done; if the government was adequately prepared for it; whether the operation has been successful and how the government stands to benefit," PAC Chairman K V Thomas told Business Standard after the panel took the decision on Thursday.

Extending support to the drive against black money, Thomas, a Congress member in the Lok Sabha, said these issues were important and the panel thought it proper to seek responses from key government departments involved in the process of demonetisation.

Thomas has asked PAC members to frame questions accordingly so that they may be forwarded to respective departments.

The PAC move comes amid a bitter fight between the government and the Opposition over the banning of Rs 500 and Rs 1,000 currency notes on November 8 that has resulted in a deadlock for the past 10 days within Parliament.

Former prime minister Manmohan Singh, a well-known economist, has questioned demonetisation saying GDP will go down by 2% owing to currency reform.

The Opposition's main charge against demonetisation is that the move has brought immense hardships to millions of people who had to queue up outside banks and ATMs to withdraw their own money.

Noting the move will dent the informal economy which accounts for around 40% of the country's economy and deals in cash, they have said that Modi is to be blamed squarely for the over 80 deaths due to demonetisation.

The Opposition has also targeted the government, which has issued over 100 new instructions related to demonetisation since November 8.

"This proves the government was ill prepared and is dealing with the issue in an ad hoc manner," Congress spokesperson Randeep Surjewala said.

IMAGE: Economic Affairs Secretary Shaktikanta Das, left, with Reserve Bank of India Governor Dr Urjit Patel. Photograph: PTI Photo

Amit Agnihotri
Source: