Here’s what RBI Governor Urjit Patel has to say about Demonetisation, Donald Trump, cashless economy

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New Delhi | Updated: November 29, 2016 6:45:14 AM

The central bank chief said that India continues to be a good long-term growth story, and therefore an attractive FDI (foreign direct investment) destination.

urjit patel, urjit patel rbi, rbi urjit patel, urjit patel rbiHe, however said, that India is relatively well positioned to handle the global shock. (Reuters)

Reserve Bank of India Governor Urijit Patel on Monday said that it’s clear that United States of America under Donald Trump will be  less open to trade in goods, services and outsourcing. He said that country’s new President-elect has indicated that he is against the TPP (Trans-Pacific Partnership treaty). He added that the country is likely to expand its fiscal deficit to fund infrastructure etc. Patel made the statement in an interview wit Bloomberg-Quint. He, however said, that India is relatively well positioned to handle the global shock. The central bank chief said that India continues to be a good long-term growth story, and therefore an attractive FDI (foreign direct investment) destination. While the rupee is market determined, we have the means to mitigate any undue volatility. Refusing to comment on the potential GDP hit due to demonetisation, Patel said that he will make remarks on the same in next week’s monetry policy metioning the short-term and long-term implications of  policy. Discussing the issue of digitalisation, he said that the country is in a ‘transitional stage’.

He said: “there are opportunities also to speed up digitalisation, use of debit cards, E-wallets etc quickly. Otherwise things take time.” He added that RBI and other banks have played tried to accelerate the process by fee waivers and other steps.

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