The Reserve Bank of India (RBI) Governor Urjit Patel on Sunday said the central bank is monitoring the situation on a daily basis and taking necessary action to “ease the genuine pain of citizens”, and would be putting things in place as soon as possible.
Patel also informed that RBI has announced an incremental cash reserve ratio (CRR)of 100 percent “because of the large increase in deposits of banks on account of the return of ~1,000and ~500notes” and the decision would be reviewed immediately, once the government issues adequate quantum of market stabilisation scheme (MSS) bonds, which they have promised to do.
In an exclusive interview to PTI , Patel said RBI is monitoring the situation arising out of the decision to withdraw ~500and ~1,000 notes on a daily basis, and the printing presses have started to rebalance the production of new notes towards ~100and~500bills.
He requested the public to start using cash substitutes like Debit Cards and Digital Wallets, adding that it will make transactions cheaper and easier. Also, in the longer term, it would help India in moving towards a less cash-use economy on a par with more developed nations. He further said that banks are advised to make a big push with point-of-sale machines with traders, which in turn result in more usage of Debit Cards.