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RBI Governor should quit, demands AIBEA

Chennai, April 19 : The All India Bank Employees’ Association (AIBEA) on Thursday demanded Reserve Bank of India Governor Urjit Patel quit as the central bank is grossly negligent on several issues, including the cashless ATMs across the country.
In a statement issued here, AIBEA General Secretary C.H.Venkatachalam said: “RBI has increasingly become irrelevant because they are becoming an appendage of the Government, not enforcing their independent powers.
“In issue after issue, RBI is found wanting. It is high time that the present RBI Governor owns up and resigns or he should be removed. RBI is grossly negligent.”
Referring to Patel’s statement that there are adequate currency notes after several ATMs in several states ran dry, Venkatachalam asked: “Then where have the currency notes gone? Are they (RBI) not to investigate? Are they not to ensure that banks have enough cash to meet the requirements of customers?”
He also said fearing safety of their money as many banks are suffering losses due to loans turning bad, frauds and the bail-in clause in the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, customers are also withdrawing cash and keep it idle at home, adding to the cash crunch.
As per the bail-in clause in the FRDI Bill, banks can use customers deposits to come out of their financial trouble.
Venkatachalam said RBI controls the money supply in the economy taking into account the supply and demand of currency notes and others.
“But within the decided quantum of money supply, when more number of Rs 2,000 notes are printed, there is a natural shortage of small denomination notes like of Rs 50, 100 and 200 which are most needed. The 2,000 rupee notes constitute the bulk of currency supply and hence there is shortage of notes of small denominations,” he said. (IANS)