As Urjit Patel Fumbles, RBI's Autonomy in a Bigger Jumble
The government's shadow over the Reserve Bank of India just got bigger. Appearing before the parliamentary standing committee yesterday, RBI governor Urjit Patel shied away from (or perhaps deliberately avoided?) answering most questions put forth to him. The most gaping hole in his responses? He did not know how much of the Rs 15.4 trillion of demonetised money has been returned to the banks. The banks are still counting, he says. Then, when asked when this number would be available to the public, he gave no definite answer. Now, it is no secret that demonetisation has been hugely disruptive for all of India. And that's what makes this figure so critical. In all the debate over demonetisation, this one number alone would indicate whether the entire exercise was a success...or a failure. It will show whether black money hoarders did indeed figure out how to get their stash back in the system with little or no costs. If the portion of 'black money' that was actually de...