Since November 8, the day PM Modi announced his demonetisation move, people are having a terrible time as they are unable to get their hands on lower denomination notes. Even after standing in long queues for hours outside ATMs and banks, all you get in hand is Rs 2000 note. The question that arises here is what will you do with such a big note if lower denomination notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500 are not available! Banks are not supplying lower denomination notes to the public. However, RBI on Wednesday said it has supplied 19.1 billion pieces of lower denominations to public. “As far as the lower denomination is concerned, between 10th Nov and 5th Dec 2016, notes of Rs 100, Rs 50, Rs 20 and Rs 10, RBI supplied 19.1 billion pieces of lower denominations to public, which is more than total of last 3 years.”
Stating that there is adequate supply of notes, RBI Deputy Governor R Gandhi further said that people should not try to hoard the new currency. He also said that Rs 4 lakh crore has been supplied in new notes. “The note withdrawal decision was not taken in haste but after detailed discussions. RBI and Central Government’s note printing presses are working at full capacity. We advocate that people should shift to digital payments mode,” he said when asked about the queues outside the ATMs. “There has been no implication of demonetisation on RBI’s balance sheet,” Urjit Patel added.
— BTVI Live (@BTVI) December 7, 2016
Taking markets by surprise, RBI Governor Urjit Patel today kept short-term lending rate unchanged even as the central bank lowered GDP growth rate to 7.1 per cent and short-term disruption in economic activities due to demonetisation. Patel-led 6-member Monetary Policy Committee, which had in its first policy review cut interest rate by 0.25 per cent in October, belied expectations to keep benchmark repo rate unchanged at 6.25 per cent unanimously.
In view of disruption in economic activities due to demonetisation, RBI lowered growth forecast from 7.6 per cent to 7.1 per cent for the current fiscal.