Congress
spokesman S. Surjitwala nomenclature Reserve Bank of India as Reverse Bank of
India, since, the central bank has reversed the order following protest from
customers and bank employees. Two days
ago, the RBI has issued directives to the banks regarding one time deposition
of old currency notes above Rs 5000 by the customers and to explain at least to
two bank officials regarding delay in deposition of these notes. Following protest, the RBI withdrew its
circular. The bank federation, on
December 21, protested against frequent changes in rules and regulations by RBI
which leads to confusion. Some of the
banks are protesting in view of availability of less cash. The union opined that the duty of bank
officials is related to banking system and not of investigative agencies. Another objection is on availability of cash
to PSU banks vis a vis private banks; the HDFC, Axis and ICICI are getting
sufficient cash. Third, circular issued
by RBI reaches bank branches after three days, but, announce it immediately
through media and then people confronts with bank employees that leads to
chaos. Smooth supply of cash to semi urban
and rural area is the biggest worry; the public is confronting with bank officials
for want of cash especially of small denomination notes.
The
economic affairs wing of central finance ministry simultaneously issued
circulars along with RBI; it creates embarrassment among customers and bankers. From November 8, sixty circulars / orders /
amendments have been issued by aforesaid agencies. In the last communique the RBI amended the
circular regarding KYC compliance that unnecessarily resulted in wrath from the
customers. Restriction on withdrawal of
money is another confusion and confrontation issue; “the movement they
(government and RBI) take away the restrictions, everybody will want to go and
draw out a lot. That becomes a problem.”
SBI Chairman Arundhati Bhattacharya said.
Another
compulsion is RBI Governor and Economic Affairs Committee Secretary of Central
Government will have to explain the detail facts regarding demonetization to
Parliamentary Public Accounts Committee headed by Veerappa Moily in the second
week of January. Let us see the outcome
of the PACs stricture and recommendations.
Only positive side is, till date RBI has released new currency of Rs
5.92 lakh crores and till mid of January sufficient currency will be
circulation. The Monetary Policy
Committee of RBI has stated that the policy will have negative impact over
industrial output.
From
the day one the RBI Governor Mr Urgit Patel is in limelight for one or the
other reasons. Like a shuttle, Mr Patel
is unnecessarily moving from pillar to post and facing the orchestra from all
the side. He has no say in policy
implementation; it suffices from the way the things are changing like chameleon
from the day of announcement of the policy.
Probably, Raghuram Rajan (Ex RBI Governor) could not have yielded to the
move from PMO office; this might be one of the reasons of his exit from the
illustrious post.
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