RBI replaces 60% of demonetised...

Financial Services Secretary Anjuly Chib Duggal also briefed the panel on monetary policy, including the note ban.

Representatives of the Indian Banks’ Association also briefed the panel.

As members sought to know if the government forced the RBI to suggest the note ban, both Das and Patel replied that the government had been discussing the issue with the central bank since early 2016.

However, while Das said such consultations started in May, Patel said discussions were initiated in January.

When a member asked why a joint secretary of the finance ministry had been deployed at the RBI to monitor the currency situation after demonetisation, Patel had no reply.

Sources said both the briefings were inconclusive and would resume after the first half of the Budget session of Parliament ended on February 9.

According to sources, the Opposition members asked a lot of questions related to the suffering of the people, the economy, job losses and the over 100 deaths attributed to the note ban.

In response to queries related to the preparedness of the banking system to deal with the impact of the note ban, RBI Deputy Governor S S Mundra said all the automated teller machines (around 200,000) were functional now.

Congress member Digvijaya Singh wanted a timeline on lifting of cash withdrawal limits.

“Patel could not answer how much money had come back into the system and by when banks’ operations would be normal. RBI officials were defensive on demonetisation,” another Opposition lawmaker said.