The hoarding of Rs 100 notes aggravating currency crisis
The RBI had already made available to the banks the small currency after November 8 but the kind of complaints being received clearly indicated that the Rs 100 notes were not in the market as these should have been. It, in fact,jolted the central government's decision to demonetise old rs 500 and Rs 1000 notes, officials added
Lucknow/New Delhi: The currency crisis in the country following November 8 demonetisation order has aggravated further following hoarding of small denomination currency notes specially Rs 100,the various government agencies observed.
The officials in banking division of Finance Ministry admitted that the currency situation was not that good in view of the hoarding of rs 100 notes. It could be said because the complaints of shortage of Rs 100 notes did not match the number of this currency infused in the banking system during last few days thus complicating the crisis more.
The RBI had already made available to the banks the small currency after November 8 but the kind of complaints being received clearly indicated that the Rs 100 notes were not in the market as these should have been. It, in fact,jolted the central government's decision to demonetise old rs 500 and Rs 1000 notes, officials added.
Not only this, rather slow pace of the availability of new Rs 500 and Rs 1000 notes has further added to the woes of the public because Rs 2000 currency has not been helping the day to day purchasing. The current scenario forced the government to reduce the exchange limit to Rs 2000 from Rs 4500.
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A section of central government officials looked agreed to the former Finance Minister Minister P Chidambaram that the current crisis could well take six-seven months to be resolved in view of the capacity of security printing by the RBI.
The future scenario:
- The concerted efforts are needed to bring out Rs 100 notes from households.
- Awareness and sense of security also required among the citizens.
- Situation may ease from day onwards when new Rs 500 notes will be infused at many places.
- More Rs 500 and Rs 1000 notes will help the system to be normalised.
- Small denomination should be printed simultaneously with rs 500 and Rs 1000 notes.
What Minister of State Arjun Ram Meghwal said to 'Business Standrad':
- These are short term problems.
- People are withdrawing money and keeping it at home. I appeal to the people to spend.
- We have adequate currency.
- There is no need panic.