Parliamentary standing committee meeting to discuss impact of demonetisation today

New Delhi: A crucial Parliamentary standing committee meeting to discuss the impact of demonetisation is scheduled for 11 am on Tuesday.

As per Zee Media, Reserve Bank of India (RBI) Governor Urjit Patel will also attend the meeting. He is expected to apprise the Parliamentary standing committee regarding the impact of demonetisation on Indian economy.

The standing committee is also expected to disuss administrative reforms that should be implemented at the Central Bank.

Among other issues to be discussed include the mounting NPAs (Non performing assets) being faced by the banks, impact of  demonetisation on Indian farmers.

It may be recalled that a crucial board meeting was held last Monday to discuss the liquidity crisis that allegedly triggered a tiff between the government and the central bank last month.

In its last board meeting, RBI decided to form an expert committee to examine the economic capital framework of the central bank, which will decide the amount of reserves it can maintain, handing over the balance to the government.

The board also considered other issues related to the liquidity crunch in the economy and decided that the matter of relaxing the Prompt Corrective Action (PCA) norms to clean up the balance sheet of banks burdened with bad loans will be looked into by RBI`s Board for Financial Supervision (BFS).

With Agency Inputs