Cash crunch: RBI, government got off-guard: Recently, the country has quickly dropped into a sharp currency emergency. Many states observe unusual cash grind. Within an empty ATM and bank counters have got the RBI and the government totally unprepared.
The Finance Minister Arun Jetli said that the government will do all that is needed to make an easy situation. Although, RBI is moved quickly public relation more currency notes.
Sanjiv Sanyal is the principal advisor to the finance minister. He said that the government will also break down on possible hoarding of Rs.2000/- notes. So, the question was arise that what has the reason for suddenly Cash crunch?
One of the views is that bankers demand the condition is not similar to the DeMo days. But authorities say that the festival time demand could not be the reason for the Cash Crunch.
Another point of view that is collecting cash from political party heads before of the state polls. The Congress president Rahul Gandhi has said by blaming PM Modi for single-handedly destroying India’s banking system.
So, Indian Development Debate, bankers, economists, and former RBI officials talked about the Cash crunch in the banking system.
Abizer Diwanji is a partner and National Leader of EY India. He said that it is logical problem. If you see this done in many cities at the same time. So, it is disturbing. Supply is not the problem, but there is unusual demand. Further, any supposition will irritate the condition more.
Pratip Chaudhari is the former chairman of SBI. He said that the most worthless thing in this type of condition is to be in rejection mode. This should not do anytime. Suddenly, the stock up the ATMs. New currency categories came in but the ATM was not measured to handle these new notes. Unfortunately, that is not the situation today.
R. Gandhi is the former Deputy Governor of RBI. He said that various parts of the country require currency notes of various denomination. Now we know that there is a quick demand for specific pockets. But moving money to these areas needs time. When the economy activity chooses, people will need more money.
Subhash Garg is the economic affairs secretary. He said that if the money had grown as it was growing before demonetization. Likely, it would have been somewhere at the level of Rs.22-23 lakh crore. Therefore, we are at a lower level.