Cash crunch will ease soon, RBI guv tells PAC

January 20, 2017 15:54

Reserve Bank of India Governor Urjit Patel on Friday told the Public Accounts Committee that the cash crunch in the country post the November 8 demonetisation drive will normalise with the passage of time.

Sources said the central banking institution also informed the PAC that specific agencies like Financial Intelligence Unit and income tax department are looking into abnormal deposits.

Explaining demonetisation to the PAC members, the RBI governor informed them about the efforts being made to normalise the cash crunch in rural areas. He also threw light on the efforts being made to normalise the situation in urban areas.

The RBI governor had on Wednesday appeared before Parliament's Standing Committee on Finance over the same issue during which he failed to disclose the amount of money that returned to the banking system post demonetisation.

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