Demonetisation: PAC to discuss impact with Urjit Patel, Shaktikanta Das in January

The panel will seek responses from key govt departments that have been involved in the process of demonetisation

The Public Accounts Committee (PAC) of the Parliament has decided to summon RBI governor Urjit Patel, finance secretary Ashok Lavasa and economic affairs secretary Shaktikanta Das in the first week of January next year to assess the impact of demonetisation.
 

"The panel will find out why demonetisation was done; if the government was adequately prepared for it; whether the operation has been successful and how the government stands to benefit," PAC chairman KV Thomas told Business Standard after the panel took the decision on Thursday.

Extending support to the drive against black money, Thomas, a Congress member in the Lok Sabha, said these issues were important and the panel thought it proper to seek responses from key government departments involved in the process of demonetisation.

Thomas has asked PAC members to frame questions accordingly so that they may be forwarded to respective departments.

The PAC move comes amid a bitter fight between the government and the Opposition over the banning of Rs 500 and Rs 1,000 currency notes on November 8 that has resulted in a deadlock for the past 10 days within the parliament.

Former prime minister Manmohan Singh, a well-known economist, has questioned demonetisation saying the GDP of India will go down by 2 per cent owing to currency reform.

Singh, a former RBI governor, described the move as a "monumental mismanagement, an organised loot and a legalised plunder," while justifying criticisms of India's central bank for poor implementation of the note ban.

Congress leader Rahul Gandhi has alleged that PM Modi has tried to benefit his rich friends through demonetisation.

The Opposition's main charge against demonetisation is that the move has brought immense hardships on millions of people who had to queue up outside banks and ATMs to withdraw their own money.

Noting the move will dent the informal economy which accounts for around 40 per cent of the country's economy and deals in cash, they have said that Modi is to be blamed squarely for the over 80 deaths due to demonetisation.

The Opposition has also targeted the government, which has issued over 100 new instructions related to demonetisation since November 8.

"This proves the government was ill prepared and is dealing with the issue in an ad-hoc manner," Congress spokesperson Randeep Surjewala said.

While the opposition initially insisted that Modi should address the issue in the House, they later started pressing for his apology for stating that opposition parties supported black money.

However, JD (U) and BJD have welcomed the move exposing cracks in the opposition unity.

The government, meanwhile, has rubbished these protests saying that PM Modi's move was historic and bold. It aimed at curbing black money and helping the poor with the funds generated.