Urjit Patel will explain the decision of demonetisation and its effect on economy. (File Photo)
Reserve Bank of India Governor Urjit Patel is expected to appear before a parliamentary panel today, which has asked him to explain the decision of demonetisation and its effect on economy. He is also expected to be asked about the steps the nation's Central bank took to counter the cash crunch that followed the sudden withdrawal of 500 and 1000- rupee notes from circulation, which was announced by Prime Minister Narendra Modi in a surprise address to the nation on the evening of November 8.
Representatives of Indian Banks Association, State Bank, Punjab National Bank and Oriental Bank of Commerce are expected to be present at the meeting, where representatives of the Finance Ministry will also brief the members of the Standing Committee, headed by senior Congress leader Veerappa Moily.
On January 8, the committee had asked the RBI chief to respond to a set of questions on the currency ban and appear before it tomorrow. Mr Patel, who has been under opposition fire since the cash crunch started, is also expected to appear before parliament's Public Accounts Committee regarding the same on January 20.
The opposition has alleged that the RBI had compromised its autonomy after the bank, in its written response to the committee, said the government had "advised" it to scrap 500 and 1,000-rupee notes on the November 7 -- a day before the announcement was made.
The abrupt withdrawal of the high denomination of notes had put 86 per cent of currency out of circulation - triggering a huge cash crunch across the country. Huge queues formed outside banks and ATMS - a situation that PM Modi had promised would normalise within 50 days.