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Demonetisation: Steps taken to ease pain of citizens, says RBI Governor Patel

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New Delhi:  File Photo-  Deputy governor of RBI Urjit Patel.  Patel will take over as the central bank’s new head, ending two months’ speculation about Raghuram Rajan’s successor.   PTI Photo  (PTI8_20_2016_000209B)

Mumbai: Terming demonetisation as a “once in a lifetime event” that requires mammoth logistics, Governor Urjit Patel on Sunday said RBI is taking all necessary actions to “ease the genuine pain of citizens who are honest and who have been hurt” and hoped things will normalise at the earliest.

Speaking for the first time after the decision to withdraw old Rs 500 and Rs 1,000 notes, Patel who has been facing criticism for keeping silent, also said the situation is being monitored on a daily basis while printing presses have started to rebalance the production of new notes towards Rs 100 and Rs 500 bills.

Also Read: Demonetisation: End corruption or support Bharat bandh, PM tells nation

Giving details of the steps being taken by RBI, he said, “Both RBI and government have been getting the printing presses to work at capacity to get the new notes available to meet demand. “RBI is interacting with the banks every day. They are telling us that the situation is gradually easing. The queues in branches and ATMs are shorter and the markets are starting to function, and there are no reported shortages of daily items of consumption. “Also, about 40-50,000 people were deployed to refit the ATMs. Currency is available and banks are working in a mission mode to lift currency and take them to their branches and ATMs. The staff members of all banks have worked very hard, and we all owe them our gratitude,” Patel told PTI in an interview.


Also Read: Defunct Rs 500, Rs 1,000 notes can now only be exchanged at RBI counters

On why there have been long queues and a reduction in trade and business, Patel said, “This is a once in a lifetime event. It is very rare to remove 86 per cent of the currency in circulation in one go. The logistics of such an operation is mammoth.” “And yet for withdrawal of legal tender status to be effective, complete secrecy was required. So, it is difficult to get all banks ready and fully prepared in 24 hours for a big step like this. Obviously, this has caused some dislocation. That is why we request support from all Indians for the larger cause of fighting tax evasion and the black economy,” he said.