RESERVE BANK OF INDIA WORKING ON PLAN TO REDUCE ON LINE CHARGES:REPORT

RESERVE BANK OF INDIA WORKING ON PLAN TO REDUCE ON LINE CHARGES:REPORT

Urjit Patel had met the panel to answer questions about demonetisation and its impact.

THE Reserve Bank of India (RBI) is working on a plan to reduce online transaction costs in order to encourage more digital banking, reported Reuters. Quoting two parliamentary panel members, the report said central bank Governor Urjit Patel said this Friday before the Public Accounts Committee (PAC).

“We are working on a mechanism to bring down transaction costs,” one member of the public accounts committee quoted Patel as saying. “We are speaking to all stakeholders.”

Patel had met the panel to answer questions about demonetisation and its impact.

According to ANI, Patel is also learnt to have told PAC that cash flow will normalise with the passage of time and underlined the steps being taken for this, in both rural and urban areas.

He also said that specific agencies like financial intelligence unit and income tax department are looking into abnormal deposits.

The RBI Governor also informed PAC that demonetisation will have a short-term impact on GDP but will have a positive impact in mid and long term.

In a shock move on November 8, Prime Minister Narendra Modi had announced demonetisation of old Rs 500 and Rs 1,000 notes.

Following the decision, the RBI had put curbs on withdrawal of cash from ATMs and banks to deal with shortage of new high-value currency notes.

Source:Indian Express