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Demonetisation a well deliberated decision: RBI

Author: TNN
Publication: The Times of India
Date: December 7, 2016
URL:   http://timesofindia.indiatimes.com/business/india-business/Demonetisation-a-well-deliberated-decision-RBI/articleshow/55852805.cms

Reserve Bank of India's Deputy Governor R Gandhi on Wednesday claimed that the decision to demonetising Rs 500 and Rs 1,000 notes was taken after detailed deliberations and not in haste, while about Rs 12 lakh crore of the new notes have been deposited. To ease the cash crunch, the RBI also assured the steady supply of new notes into the system.

"The demonetisation decision was not taken in haste. 19 billion new notes have been given to public, more than what we have supplied to public in the last 3 years, RBI's deputy Governor R Gandhi said while addressing a press meet following the central bank's bi-monthly monetary policy review.

While responding to a query regarding the review of last date of demonetisation drive, Gandhi said, "About the date, it is a continuous review. The programme is as of now December 30."

To counter cash crunch, he said, "We are trying to provide adequate cash. We advise people to not panic or hoard cash. They should also consider adopting more digital payments as there are many available options."

"RBI's note printing presses are working at full capacity and as on December 5, notes worth 4 lakh crore have been supplied to the banks," he added.

Gandhi while stressing that there is no shortage of cash said, "As far now about 12 lakh crore demonetised Rs 500 and Rs 1,000 notes have been deposited in the banks and new notes are continuously being supplied to ease the pressure .

Asked whether the RBI is planning to re-introduce new Rs 1,000 notes, Gandhi said: "Choice of denomination as I have mentioned is based on the requirements of the public. It will be determined as time goes on. Whether Rs 1,000 notes will be coming or not, yes, down the line there can be a decision relating to that. As of now, we have not determined anything about it."

On November 8, Prime Minister Narendra Modi left the nation stunned after announcing that the Rs 500 and Rs 1,000 notes, the two big currency denominations that account for 86 per cent of the money in circulation, invalid.
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