NEW DELHI: Reserve Bank of India (RBI) Governor Urjit Patel told Parliament’s Public Accounts Committee (PAC) that the central bank “is closely monitoring” US monetary policy and its implications on domestic interest rates. Patel was responding to questions on US monetary policy and the changes likely to be made by the new Trump administration. Kirit Somaiya and Nishikant Dubey of the BJP protested, saying, “RBI officials can’t be questioned as if they are criminals.” They wondered whether the committee would “summon and question the transport minister for road accidents.”Only one of the three Congress members on the panel attended Friday’s deliberations. Patel is said to have deflected most questions related to demonetisation while stressing that some “temporary hardships” should be considered as the pangs “of this transition phase” towards a better economy When members asked how much old currency had been returned to the RBI after demonetisation, Patel parried the question. The PAC is scheduled to call the RBI brass for another round after the budget session of Parliament.

Source: Economic Times January 20, 2017 18:51 UTC