Government sets up two panels to monitor demonetisation exercises | business-news | Hindustan Times
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Government sets up two panels to monitor demonetisation exercises

While the RBI panel will monitor the recalibration exercise of the ATMs so that they can start dispensing currency notes of Rs 500 and Rs 2000 at the earliest, the committee of finance ministry officials will focus on currency distribution in the rural areas.

business Updated: Nov 14, 2016 18:02 IST
HT Correspondent
While the RBI panel will monitor the recalibration exercise of the ATMs so that they can start dispensing currency notes of Rs 500 and Rs 2000 at the earliest, the committee of finance ministry officials will focus on currency distribution in the rural areas.
While the RBI panel will monitor the recalibration exercise of the ATMs so that they can start dispensing currency notes of Rs 500 and Rs 2000 at the earliest, the committee of finance ministry officials will focus on currency distribution in the rural areas.

As panic spread with ATMs turning dry and thousands queuing up at banks to withdraw and exchange cash, the government has set up two separate panels-- one under the Reserve Bank of India deputy governor SS Mundra and the other one, a seven member team comprising seven secretaries and joint secretaries of the finance ministry.

While the RBI panel will monitor the recalibration exercise of the ATMs so that they can start dispensing currency notes of Rs 500 and Rs 2000 at the earliest, the committee of finance ministry officials will focus on currency distribution in the rural areas.

“The number of ATMs which will be recalibrated and which can dispense Rs 2,000 notes will be stepped up and to make this whole process faster, to expedite this whole process, a task force was decided to be set up under the chairmanship of deputy governor (of RBI),” Shaktikanta Das, secretary, department of economic affairs said at a press conference.

There are 2.17 lakh ATMs in the country. Most of them still need to be recalibrated to be able to dispense the new currency notes that come in different designs and features.

Meanwhile, senior officials in the finance ministry have been also allocated different states and banks with the purpose of reviewing the situation on a daily basis. Das said that the officials have been asked to come up with action plan to resolve the situation.

With the demonetisation exercise hitting its sixth day on Monday, things were far from normal with citizens facing different problems of liquidity. Earlier on Sunday, Prime Minister Narendra Modi had held a meeting with senior ministers and government officials to review the progress of the demonetization exercise.