Agencies
New Delhi, Nov 13: Saying there was no shortage of cash in small denominations, the RBI Sunday urged people not to repeatedly withdraw money from banks for hoarding.
“The Reserve Bank assures members of the public that enough cash in small denominations is also available at the Reserve Bank and banks,” it said in an advisory.
The advisory followed massive crowds outside all banks and ATMs across the country for a fourth straight day since the government demonetized 500 and 1,000 rupee notes.
The banned rupee notes made up more than 80 per cent of the currency in circulation, leaving millions without cash and threatening to bring much of the cash-driven economy to a halt.
The measures came as people complained of lack of access to their accounts despite hours of waiting at banks as well as over the non-functioning of tens of thousands of ATMs not yet reconfigured for the new series of smaller 2,000 rupee notes.
There were reports that the central bank’s office in Ahmedabad was handing out coins in return for the old notes because it didn’t have enough valid tender.
Meanwhile, Prime Minister Narendra Modi, facing criticism from opposition groups for putting ordinary people into trouble, promised more steps to rid the country of graft.
“I know the forces up against me, they may not let me live, they may ruin me because their loot of 70 years is in trouble, but I am prepared,” he said in a speech in Goa. He revealed that the decision to demonetise high-value currency was taken over the past 10 months.
The “black economy”, the term widely used to describe transactions that take place outside formal channels, could account for as much as 20 percent of gross domestic product, according to investment firm Ambit.
However, Modi’s political opponents have stated that they would unite to fight the demonetisation which had made lives difficult for millions of ordinary people.
“The government has spread anarchy in the country, the common man cannot buy daily products,” Mulayam Singh Yadav, the leader of Samajwadi party said in Uttar Pradesh and he demanded withdrawal of demonetisation.
Mamata Banerjee, the chief minister of West Bengal, referred to the situation to “Emergency” and pledged to unite opposition parties against the government’s decision.
“I have never seen such a thing. People have money in their accounts but can’t access it. They can’t pay for treatment of a family member in hospital, weddings have been put on hold, daily business has taken a beating,” she has stated.
