House panel summons RBI chief on December 22

New Delhi: Concerned over the havoc created by demonetisation in the banking system and the inconvenience being caused to the common man, the Parliamentary Standing Committee on Finance has summoned Reserve Bank of India (RBI) governor Urjit Patel on December 22.

Sources privy to developments said that the parliamentary panel is likely to grill Mr Patel about the extent of RBI’s role in planning the entire demonetisation exercise and whether it had prepared any back-up plan to combat its negative fallout.

The panel led by Congress MP M. Veerappa Moily will be discussing the burning issue for the first time since Prime Minister Naredra Modi announced last month that the Rs 500 and Rs 1,000 denomination notes will no longer remain legal tender from November 8 midnight onwards.

Sources said that the panel is quite worried over the fallout of the entire exercise, which has been causing great deal of pain to the common man, and it mainly wants to know from the RBI governor as to how much say did it have in the entire process.

They further added that Mr Patel is also likely to be asked about the kind of planning done by the government over the issue.

Also whether the government and the RBI were aware of the quantum of impact the demonetisation exercise would have on the common man is another aspect which the parliamentary panel is likely to discuss with the RBI governor.