1. GST, demonetisation to have far reaching impact, says RBI governor Urjit Patel

GST, demonetisation to have far reaching impact, says RBI governor Urjit Patel

The Reserve Bank of India (RBI) governor Urjit Patel has said that the nationwide Goods and Services Tax (GST) and legislation of bankruptcy code should impart resilience to the economy.

By: | New Delhi | Published: January 1, 2017 1:52 PM
The governor in his Financial Stability Report published by the RBI said that the withdrawal of specified bank notes will impart far reaching changes going forward. (Reuters) The governor in his Financial Stability Report published by the RBI said that the withdrawal of specified bank notes will impart far reaching changes going forward. (Reuters)

The Reserve Bank of India (RBI) governor Urjit Patel has said that the nationwide Goods and Services Tax (GST) and legislation of bankruptcy code should impart resilience to the economy. The governor in his Financial Stability Report published by the RBI said that the withdrawal of specified bank notes will impart far reaching changes going forward.  “With respect to demonetisation, it is expected to significantly transform the domestic economy in due course in terms of greater intermediation, efficiency gains, accountability and transparency through increasing adoption of digital modes of payments, notwithstanding the short-term disruptions in certain segments of the economy and public hardship,” added Patel.

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Raising concerns about stress in the banking sector, he said “While the domestic banking sector continues to face significant levels of stress partly reflecting legacy issues, on balance, enhanced transparency has helped to reinforce the stability of India’s financial system.”  Adding to this he said that the global financial crisis has prompted regulators to require banks to undertake stress tests to see if their risk appetite matches their risk taking capacity.

  1. chandra social
    Jan 1, 2017 at 8:58 am
    With due respect to Mr. Patel, Governor of RBI, I would express my views. I would like to know the impact of demonitisation on Indian economy in quanative terms. I have a few questions to you as citizen of this country.1. What were the objectives of demonitisations?2. What are the conditions necessitate to bring about demonitisation?3. Was the RBI prepared to put the economy under ICU for 50 days or more?4. Has the RBI and Its directors had impact anaylsis done before demonitisation? If yes, why there are aberrations continuing?5. What is the cost of demonitisation? what are the benefits of demonitisation?6. Do you agree that there is loss of GDP in economy? If your answer is Yes, What is the loss of GDP? As we all go by GDP of the country.As i studied, The cost of printing is Rs. 42000 crores. The GDP loss per day is around Rs. 25000 crores. Leave collateral damages to subject estimation.The total cost of demonitisation for 50 days is more than Rs. 10,00,000 crores (estimation)I sincerely ask Mr. Patel Is demonitisation worth doing in the 3rd largest economy in the world?The PM,FM,RBI should give answer one or the other day. This is the historical decision of RBI in the history of the world.
    Reply
    1. N
      Nidhi Hajwani
      Jan 1, 2017 at 9:23 am
      Is he out of deep slumber?
      Reply

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