House panel seeks details from RBI, bankers on demonetisation outcome

A parliamentary panel has sought details from the Reserve Bank of India (RBI) about the post-demonetisation scenario, including the quantum of banned notes deposited so far and also the black money that has come back to the system.

The 15-member committee on subordinate legislation, headed by Congress member T Subbarami Reddy, met with RBI Deputy Governors N S Vishwanathan and B P Kanungo, senior bankers and heads of state-owned insurers here on Wednesday.

The meeting was also attended by Irdai chairman T S Vijayan, senior officials from the department of financial services and the Industrial Finance Corporation of India.

"The committee posed questions to the RBI deputy governors about the ground situation, post note ban. They asked the quantum of banned notes returned to the system, including the details about fake notes," said a banker.

The government on November 8 last year had demonetised Rs 500 and Rs 1,000 notes with the stated objective to fight corruption, black money and counterfeit notes. Later on, the government changed the objective to fighting terrorism and increasing digital payments.

"The panel also wanted to know from the RBI brass how much black money has come back to the system, post demonetisation," said another banker.

The deputy governors, however, said they were not in a position to give the exact details, saying the process of recounting the deposited notes is still on. That apart, the window for NRIs to deposit the banned notes is also on till June 30.

The panel members also wanted to know from bankers the steps they have taken to ensure customers do not have to face hardships due to a shortage of currency.

The committee sought details from the RBI and banks about the fraud management system that has been put in place to safeguard customers' interest.

It also examined Irdai's regulation on issuance of e- insurance policies.