RBI Guv Patel backs note ban, tells Parl Panel bad loan issue improving

RBI Guv Patel backs note ban, tells Parl Panel bad loan issue improving

Agency News

New Delhi, Nov 27: RBI Governor Urjit Patel on Tuesday told a parliamentary panel that the demonetisation was a good decision even as he maintained that the bad loan issue vis-a-vis Non Performing Assets is slowly showing improvement.

"RBI chief Patel has backed the demonetisation decision of the government. The cash to GDP ratio issue is being addressed in the process," a source said.

Sources told UNI that appearing before the Parliamentary Standing Committee on Finance headed by Congress leader M Veerappa Moily, the RBI Governor gave the central bank's response on "the subjects Impending Reforms relating to Reserve Bank of India and Resolution of Non Performing Assets Stressed Assets in Banks".

Among others former Prime Minister Dr Manmohan Singh is a member of the panel. The committee also has members such as Nishikant Dubey and Rattanlal Kataria (BJP), B Mahtab (Biju Janata Dal) and Jyotidaditya Scindia of Congress.

The RBI governor appeared before the panel days after recent face-off between the central bank and the government over issues ranging from appropriate size of reserves to be maintained by the RBI to easing of lending norms for small and medium enterprises.

"No, we did not find any contradiction in the Modi government's fiscal policy and what RBI believes. This is what we could make out of the deliberations today," a source said.

Mr Patel on Tuesday appeared for the third time to answer on intended benefits of note ban the supposed tussle with the Union Finance Ministry on certain contentious issues. (UNI)