Urjit Patel addresses media; echoes Centre's views on demonetisation

He informed the media that the RBI has lowered the GDP growth estimate to 7.1 per cent in 2016-17 from the earlier projection of 7.6 per cent.

Mumbai, Dec 7: Reserve Bank of India (RBI) Governor Urjit Patel addressed the media in Mumbai and briefed them about RBI Monetary Policy meeting.

He informed the media that the RBI has lowered the GDP growth estimate to 7.1 per cent in 2016-17 from the earlier projection of 7.6 per cent.

He further stated, "Inflation outcome in September and October vindicates current stance."

"Salary rise under the 7th pay commission has not been disruptive for inflation," Patel added. Briefing the media on the incremental cash reserve ratio, Patel said that the RBI has withdrawn it.

Patel informed the media that Centre has pro-actively responded with increasing market stabilisation scheme limit to Rs 6 lakh crore.

Patel also lauded demonetisation and said that there was no fundamental trust deficit, as most people think its good decision as it fights fake currency, black money and terrorism.

He further added that the RBI and the Centre were aware of the immediate difficulties for the public and that all efforts were made to mitigate them.

Deputy Governor of the RBI, R S Gandhi, who was also present at the briefing spoke on demonetisation and said that the decision had not been taken in haste but after a detailed deliberation.

He further informed the media that after the demonetisation of old notes, an amount of around Rs 11.55 lakh crore has been recovered. He further informed that between November 10 and December 5, the RBI supplied 19.1 billion pieces of denominations to the public, which is more than the total amount in the last three years.

Gandhi added that the presses were working at their full capacity and that all efforts were being made to supply currency to every part of the nation.

Commenting on the the criteria for selecting which denomination notes were printed he said that it was based on requirement.

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