Working on ways to reduce transaction cost: RBI tells PAC

21 January, New Delhi

RBI Governor Urjit Patel and other senior functionaries today appeared before Public Accounts Committee (PAC) for oral evidence on Review of Monetary Policy in Parliament House, New Delhi.

Sources said, RBI informed the Parliamentary panel that it is working on a mechanism to bring down transaction cost on online payments post demonetisation. Members of the Committee were also told that cash flow position in urban as well as rural areas have improved significantly.

Patel is learnt to have assured the panel that the situation would further improve in the next couple of weeks.

On impact of demonetisation on growth, the RBI Governor said, there may be impact in the short run, but in mid and long term the move is beneficial for the economy.

Later talking to reporters, PAC Chairman K V Thomas said the Committee will meet again on 10th of next month to discuss the issues with Finance Ministry officials. He further said that the RBI Governor could be called again if required.

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