Yes, note ban caused hardship to people: RBI governor Urjit Patel to PAC

Mumbai: Appearing before the Public Accounts Committee (PAC) Reserve Bank of India (RBI) Governor Urjit Patel on Friday accepted that the decision to demonetise Rs 500 and Rs 1000 notes at short notice caused huge inconvenience to people.

“The common man suffered, marriages faced problems and people died,” NDTV quoted Patel as saying to the parliamentary panel.

RBI Governor also informed the committee that the central bank was taking measures and was in talks with banks and service providers to slash transaction charges on payments done through digital mode.

Patel had earlier appeared before Standing Committee on Finance to explain what steps RBI was taking to alleviate public woes that were result of demonetisation.

Demonetisation has had short term effects but in the long term “it would be good for the economy” he added. Patel was asked by PAC to probe reports of cooperative banks’ alleged involvement in generating black funds.