RBI Responsible For Demonetization Debacle: Banks

Pointing out that 85% of deposits were made in public sector banks, several banking organizations said that the RBI should have supplied public banks with adequate number of new and small denominations of the currency.

The RBI instead favoured private banks even after the latter blatantly dispersed cash violating all the set norms of the RBI, they alleged, and demanded an inquiry into the transactions of private banks.

According to the organizations, out of an amount of Rs. 25,000 crores in Jan Dhan accounts, nearly Rs. 24,000 crores were with private banks. After the demonetization was announced, deposits to the tune of Rs. 3,000 crores in the 60 lakh Jan Dhan accounts were made in Telangana.

They also charged that the RBI had not taken proper steps in ensuring that both AP and Telangana were supplied with the required amounts of currency. AP banks received more cash flow than Telangana, the organizations alleged.