CH Venkatachalam says that AIBEA is getting reports of cash shortage from many states, but it is even severe in Gujarat
Amidst reports of shortage of currency notes across the country, the deficit is most severe in Gujarat, All India Bank Employees Association (AIBEA) secretary general, CH Venkatachalam said on Tuesday. He said people are wary about the safety of their bank savings, which is the main reason why they are withdrawing money and if the central government does not intervene immediately, the cash crisis will snowball into confidence crisis, he warned.
Venkatachalam said that the Reserve Bank of India determines how much cash should be in the system. However, the tragedy is that, usually, large amount of cash is in high value notes, which in most cases are only with a privileged section, which is why masses, including farmers, businessmen and small time industrialists are facing the shortage of currency notes. "The Rs 2,000 currency note is only for the rich and they seem to be in possession of most of the notes. So the common man is suffering shortage(sic)," he said, adding that with RBI's hands are tied in terms of limiting the quantity of cash in circulation and so it is unable to print more currency notes.
Talking to DNA, he said that AIBEA is getting reports of cash shortage from many states, but it is even severe in Gujarat. "One has to look into why it is so." He blamed the proposed Financial Resolution and Deposit Insurance (FRDI) Bill saying it has created a panic in people's minds. "This was observed in Andhra Pradesh, Telangana, Bengal and Tamil Nadu." He also speculated that the government might be forcing people towards digital transactions.
SITUATION IN MANY STATES
CH Venkatachalam said that AIBEA is getting reports of cash shortage from many states, but it is even severe in Gujarat. “One has to look into why it is so.” He blamed the proposed Financial Resolution and Deposit Insurance (FRDI) Bill saying it has created a panic in people’s minds. “This was observed in Andhra Pradesh, Telangana, Bengal and Tamil Nadu.”
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