Five of the six members of the Monetary Policy Committee (MPC) were of the view that the effect of withdrawal of Rs. 500 and Rs. 1,000 bank notes, as part of the government’s demonetisation drive, on the economy is likely to be transient.
According to the MPC meeting’s minutes, released by the RBI on Wednesday, Governor Urjit Patel observed that the impact of the withdrawal of specified bank notes (SBNs) on growth and inflation, while uncertain, is transitory.