The Reserve Bank of India, has injected Rs 9.2 trillion ($135.21 billion) worth of new currency notes into the banking system to post Demonetisation move by the government to help replace the notes banned in November, a parliamentary panel member quoted RBI governor Urjit Patel as saying on Wednesday.
Patel met the panel on finance to answer questions about the November 8 abolition of Rs 500 and Rs 1,000 notes, or 86% of the currency then in circulation, in a bid to unearth billions of dollars of unaccounted money.
About 15.4 trillion rupees worth of the notes were removed from circulation.
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Patel, however, failed to provide any figure for how many of the banned notes had been deposited into the banking system and he did not provide clarity on when the cash situation would become normal, according to a second member of the panel who was also present at the appearance.
The RBI governor also informed that consultations between the government and the central bank on demonetisation had began in January 2016, the second panel member said.
However, the government notified the RBI it wanted specifically to scrap Rs 500 and Rs 1,000 notes on November 7, a day before the RBI board formally approved the recommendation, the member said, citing a note sent to the panel by the central bank. Modi then announced the decision later on November 8.
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The IMF also trimmed the growth outlook for the fiscal year 2017-18 to 7.2% from 7.6% estimated earlier.