Industry suggests solutions to cash crunch

Press trust of India
New Delhi, Nov 14: Worried over immediate impact of demonetisation, trade and industry bodies have come out with a host of suggestions, including payment of advance salaries in new currency notes and hiring of retired bank officials to deal with the prevailing cash crunch.

In a representation submitted to finance minister Arun Jaitley, PHD Chamber of Commerce suggested payment or part payment of salaries in advance in cash to government, and public and private sector employees with new Rs 500 notes.

“This suggestion would avoid overflowing queues and hardship being faced by most of the citizens and would also avoid loss of productivity due to employee absenteeism in organisations,” the chamber said.

Industry body Assocham suggested that banks should hire retired employees on a massive scale for a speedy currency swap and cash withdrawal in the wake of junking of big denomination currency notes.

“Just like general elections when staff across different departments is mobilised; different types of staff can be used for helping the over-stretched banks, grappling with the huge task of dealing with the demonetised currency notes of Rs 500 and Rs 1,000 and dispensing the new notes,” it said in an appeal to Prime Minister Narendra Modi.

Traders body CAIT said that post demonetisation trade across the country has reduced to 25 per cent in comparison to normal days. It called upon Jaitley for “remedial” measures to intensify adoption of electronic payments beside ensuring smooth flow of currency both t the hands of traders and consumers.

Sapan Gupta, partner, Shardul Amarchand Mangaldas and Co, said demonetisation of old Rs 500 and Rs 1,000 notes is no doubt a visionary move but its impact is directly proportionate to the manner in which the transition is executed.

“The government will need to ensure the necessary infrastructure is put in place at the earliest possible to really achieve its targets,” he said.

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