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Modi Move to Tackle Rupee Crisis

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Prime Minister Narendra Modi addresses at the public meeting to mark the launch of 70th Freedom Year Celebrations, in Bhabra village, Alirajpur district, Madhya Pradesh

Modi directs steps to disburse more money in rural India….reports Asian Lite News

Prime Minister Narendra Modi addresses at the public meeting to mark the launch of 70th Freedom Year Celebrations, in Bhabra village, Alirajpur district, Madhya Pradesh
Prime Minister Narendra Modi addresses at the public meeting to mark the launch of 70th Freedom Year Celebrations, in Bhabra village, Alirajpur district, Madhya Pradesh

In a bid to ensure that people in rural areas are able to get access to cash, the government has enhanced the currency limits of banking correspondents, allowed them multiple visits to banks and disburse more money through branch post offices.

Briefing the media on Monday after a high-level meeting chaired by Prime Minister Narendra Modi the previous evening, Economic Affairs Secretary Shaktikanta Das said recaliberation of ATMs to disburse higher denomination notes had also started and will be enhanced in the next few days.

This apart, the daily withdrawal limit from ATMs has now been hiked to Rs 2,500 from Rs 2,000 and exchange of old notes from bank counters to Rs 4,500 from Rs 4,000. There are over 200,000 ATMs in the country.

Das said there were 120,000 banking correspondents — people authorised to accept small deposits on behalf of banks — and more than 130,000 branch post offices in the country. “So, 250,000 of these, mostly in rural areas, will be able to disburse larger number of cash,” he said.

Das also said the upper limit for weekly withdrawals from bank accounts has been raised to Rs 24,000 from Rs 20,000. For this, a person need not make multiple visits to the bank and withdraw the amount in a single attempt, he added.

The meeting also decided to constitute a task force under Deputy Governor of the Reserve Bank of India (RBI) to keep a real-time watch and monitor the distribution of cash through various channels and take necessary action in a timely manner.

He said the composition of the task force will be decided soon by the RBI. This apart, the RBI, Das said, has already assured the Prime Minister that there was enough cash in the financial system and that distribution was the main challenge, which was being addressed.

Other steps initiated include, separate queues for senior citizens, the physically challenged and for those who want to exchange demonetised notes, waiver of all banking and transaction charges, and extension till Nov 24 the use of old notes at petrol stations, pharmacies and utilities.

1 COMMENT

  1. Since returning from Japan, the tour which wrote a new chapter in India’s nuclear history, Prime Minister Narendra Modi and team has mooted steps to curb the menace of black money in the country. Demonetisation adopted just before Modi’s visit to Japan and since then chaos prevailing all over the country as ATMs are not able to dispense currencies of higher denominations and were shut in most of the areas. While in banks scores of people stranded in long queues to exchange the currencies in their hand as they had to wait for hours to clear their money issue. The worst part is that lot of people became jobless for few days, sounds less impact when say few days, who depend their daily wages to run their family and traders seemed to be in a vacation mood as most consumers decided to stay away from shops in order to keep the less cdenominations of currency intact. So this means a proper preparation misses from the government while implementing an act which affects every people of the society even it is for a common cause.

    Now after the arrival of Prime Minister where he echoes a man with more sharp and determined to keep his promise well, things look bright as we believe there won’t be any tumultuous situation any more. Hope that there won’t be any let up from ATM s as public will be able to get the money they required. The government should make the arrangements to disburse more currencies to rural areas as well as already said by the central government. As Mr.Modi himself projected as the man who behind mission demonetisation, he must ensure public won’t be suffered with this decision.

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