RBI Governor Urjit Patel in the parliament committee talked about how the sudden notes ban was planned and implemented. On this, Prime Minister Dr Manmohan Singh intervened to help him on the tricky matter.
Dr Manmohan Singh, who served as Finance and Prime Minister advised Mr Patel not to reply any question that could create problems for the central bank.
According to sources Dr Singh Digvijaya Singh, an MP from his party, the Congress, raised a question about whether the disorder would break out if the existing restrictions on cash withdrawals are removed. Mr Singh advised, "You should not reply to that query."
RBI has announced that daily limit for withdrawing cash from ATMs has been raised from Rs. 4,500 per day to Rs. 10,000 and no more than Rs. 24,000 per week can be pulled out per savings account.
The sudden announcement of notes ban on November 8, created a huge cash shortage with 86% of the notes in circulation suddenly declared abolished. Mr Patel today did not provide any clarification on when the cash situation would be normal.
Dr Singh has been against the move by PM Modi and even called his drive, an “organized loot and legalized blunder.”