Mumbai, Dec 1: To meet the withdrawal requirement of the salaried class who get their pay cheques from November 30 to December 7, the government has ensured there is enough cash available. Reportedly, the supply of Rs 500 notes is set to increase so that it solves the issue of shortage of notes of smaller denomination.
The supply of cash had been kept tight over past two days in the view of withdrawals for pay days. Economic Times quoted an official saying that notes of Rs 100 were increased after Prime Minister Narendra Modi announced demonetisation, but people were hoarding notes of smaller denomination. ET quoted a finance ministry source saying, “Rs 500 notes are ready.The whole process of printing and releasing takes about 21days and now it is ready to be pumped into the system. Supplies have been enhanced to ensure there are adequate supplies to cater to pay day needs.” (ALSO READ- Demonetisation: Unable to get cash, villagers block traffic in Uttar Pradesh)
After the announcement of demonetisation, from November 10, the government let deposit and exchange of old currency notes . Restrictions were imposed on both ATMs and cheque withdrawal. Initially the withdrawal limit was Rs 2,000 per day, which was later raised to Rs 2,500. While money could be witjdrawn upto Rs 24,000 a week through issuance of cheque. A withdrawal limit of Rs 50,000 were allowed for businesses.
ATMs and banks have been witnessing long queues since the announcement. People have been thronging ATMs to withdraw cash to run their daily expenses. While banks have also been witnessing heavy rush with people coming to exchange older notes of Rs 500 and Rs 1,000. Reportedly, queues outside banks have become shorter, while ATMs continue to see rush with cash drying up quickly. (ALSO READ- Pay Day: Back to queues outside Banks, ATMs as employees to withdraw first salary after demonetisation)
In a major assault against black money, corruption and fake currency, Modi on November 8 announced demonetisation of Rs 500 and Rs 1,000. Small traders, truckers and construction workers continue to face hardships in their business, even 23 days after Modi’s currency ban. As per reports, with the ongoing sowing of rabi crop, the government is focusing on easing conditions to rural people.
However, urban cities seems to facing more crunch of cash as funds are being made available in rural and semi-urban pockets for teh sowing season. Reports also say that some banks in major metros are receiving less than their cash requirement. RBI Governor Urjit Patel had earlier said that the central bank is monitoring the situation and is taking all necessary actions to “ease the genuine pain of citizens”. He also said that they are trying their best to bring the economy back to normal.