Amid chaotic uproar across the country over the implementation of the demonetisation policy, following which there had been a ban on currency notes which lead to public distress amid cash crunch, the Reserve Bank of India today clarified that the central bank would not be withstanding inconvenience to people and monetary growth of the country. RBI had also stated that the Goods and Service Tax (GST) and the newly implemented demonetisation policy can transform the economy of the country. Citing the need to deal with cash crunch following the ban on currency notes, the Reserve Bank of India had directed banks to provide additional working capital limit to MSMEs.
RBI Governor Urjit Patel had stated that the financial system remains stable following the newly implemented policy although banks, especially Public Sector Banks (PSB) had been facing significant levels of changes.The RBI governor had also stressed on the fact that enhanced transperancy had helped to reinforce stability of India’s Financial system. He further stated that there is a rise in global uncertainties and the higher Interest rates in the United States and the jump in oil prices increase the risk of spillover to the emerging markets.
Earlier in the day, Finance Minister Arun Jaitley, speaking over the uproar following the implementation of the demonetisation policy, asserted that RBI has a very large amount of currencies available with it and stated that a large amount of the deposited scrapped currency notes had been replaced and new notes of the denomination Rs 500 had been released.
In a significant development, yesterday, with just two days left for the deposit of the scrapped currency notes and amid cash crunch following the implementation of the demonetisation policy, the Reserve Bank of India had asked lenders to provide borrowers with additional 90 days for the repayment of loans.