RBI governor Urjit Patel. Pic/PTI
RBI governor Urjit Patel. Pic/PTI

Mumbai: Breaking his silence over the demonetisation issue, RBI Governor Urjit Patel yesterday said the central bank is monitoring the situation on a daily basis and taking all necessary actions to “ease the genuine pain of citizens” with a clear intent to normalise the things as early as possible.

Patel also said the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100 per cent “because of the large increase in deposits of banks on account of the return of Rs 1,000 and Rs 500 notes” and the decision would be reviewed immediately once the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds which they have promised to do. He said the printing presses have started to rebalance the production of new notes towards Rs 100 and Rs 500 bills.

He also urged the people to start using cash substitutes like debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India ‘leapfrog into a less cash-use economy at par with more developed nations.” “We are also urging banks to make a big push with PoS (Point of Sale) machines with traders so that debit card use becomes more prevalent,” he said.

‘Protest, no Bharat bandh’
Congress made it clear it has not called for a ‘Bharat bandh’ today, but will hold protests across the country against demonetisation, which it alleged “was a political move being sold as a fight against corruption”.

Modi says go cashless
With Jan Dhan accounts witnessing a surge in deposits, Prime Minister Narendra Modi yesterday issued a warning to those using poor people to park their illegal money, saying a strict ‘benami’ law would be implemented against such transactions.

Modi devoted substantial part of the 37-minute broadcast In his monthly radio programme ‘Mann ki Baat’, to the issue. Modi also said “our dream is for a cashless society. It is correct that we cannot achieve it immediately. But India can definitely move towards a less-cash society. Once we start the move towards a less-cash society, the goal of a cashless society will not be far away.”