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Demonetisation: PAC to Call RBI Governor to Review Economic Impact

Press Trust Of India

First published: December 1, 2016, 2:52 PM IST | Updated: December 1, 2016
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Demonetisation: PAC to Call RBI Governor to Review Economic Impact
File image of Urjit Patel. (Picture courtesy: Reuters)

New Delhi: Public Accounts Committee (PAC) today decided to call RBI Governor and top Finance Ministry officials next month to review the economic situation following the demonetisation of high value notes.

The decision to call RBI Governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das was taken unanimously by all the members of the Committee, headed by senior Congress leader K V Thomas.

"In the PAC meeting today, we took an unanimous decision that in first or second week of January, we will call the RBI Governor, Economic Affairs Secretary and Finance Secretary to review the economic situation after demonetisation," Thomas told PTI after the meeting.

The exact date will be decided depending on the availability of the RBI Governor, he added.

On November 8, Prime Minister Narendra Modi had announced the demonetisation of old Rs 500 and Rs 1,000 notes.

According to various estimates, the GDP growth this fiscal is expected to witness a decline due to demonetisation, but the range varies from 0.5-2 per cent.

After releasing GDP numbers for July-September, Chief Economic Adviser Arvind Subramanian had yesterday said: "What we have for the first half are actual numbers. It shows good consistent performance. For the second half, we will have to see, there is a lot of uncertainty. We have to analyse it before we say something."

The Indian economy grew 7.3 per cent in the second quarter of 2016-17, up from 7.1 per cent in the previous three-month period, as per the government data.

Last week in the Rajya Sabha, former Prime Minister Manmohan Singh had said the demonetisation step was a "monumental management failure" which would lead to 2 per cent drop in GDP growth.

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