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RBI Chief breaks silence on demonetisation
Updated : Nov 27, 2016
Reserve Bank of India Governor Urjit Patel finally broke silence on currency ban and said that the RBI is taking all possible steps to ease people's pain. Urjit Patel also said the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100 per cent "because of the large increase in deposits of banks on account of the return of Rs 1,000 and Rs 500 notes" and the decision would be reviewed immediately once the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds which they have promised to do. "The RBI is taking all necessary actions to ease the genuine pain of citizens who are honest and who have been hurt," the RBI governor said. On why there have been long queues and a reduction in trade and business, Dr. Patel said: “This is a once in a lifetime event. It is very rare to remove 86 per cent of the currency in circulation in one go. The logistics of such an operation is mammoth.”