Cash flow will normalize soon, says RBI governorNew Delhi: Reserve Bank of India (RBI) Governor Urjit Patel on Friday said that cash flow in the country will normalize soon.
Patel, according to sources, told this to the Public Accounts Committee (PAC) of Parliament while answering queries from the lawmakers on demonetization and its impact.
He told the committee that the situation in urban areas was "almost normal", and efforts were on to improve the cash flow to rural and remote areas in the country.
"It will take a few more weeks for the situation to improve in rural and remote areas," the sources quoted him as saying.
Earlier this week, the RBI Governor had told the Parliamentary Standing Committee on Finance that the new currency notes, worth Rs 9.2 lakh crore, were introduced into the financial system post demonetization.
One of the PAC members told Patel that there was a huge mismatch between the cash deposited and the actual cash in the cooperative banks.
To this Patel said that he has information on the issue and the matter was being investigated by the Financial Intelligence Unit-India (FIU-IND).
Meanwhile, two parliamentary panel members quoted the central bank governor as saying that the RBI is working on a plan to reduce online transaction costs as it tries to encourage more digital banking.
"We are working on a mechanism to bring down transaction costs," one member of the public accounts committee quoted Patel as saying. "We are speaking to all stakeholders."
Patel met the panel to answer questions about the Nov. 8 abolition of high value currency notes, or 86 percent of the currency then in circulation.
