Sunday, 11 December 2016

Post Demonetization: 33rd Day


            Banks will remain closed for three days.  At many places ATMs are closed due to cash crunch.  It seems the cash crunch is partly artificial.  Most of the new currency notes released by Reserve Bank of India are not reaching to the last destination.  Approximately Rs 4 lakh crore new cash is in circulation along with old one.  Now the question is where is the cash?  It is likely that before it reaches in the hand of common man of Mr R. K. Lakshaman part of it got lost in thin air.  The probable destination is money hoarder, hawala marketer, smuggler, politician, black money generator.  Definitely, the bankers had played major role in hand in glove deal.  To search out the currency is likely finding needle in hay stack.  Non-availability of cash has suspended operations in tea garden of West Bengal.      

           The Human Resource Development ministry has issued circular to central Univercities, IITs, IIMs etc regarding participation in cashless mission.  It is mandatory on the part of faculty and students to propagate advantages of cashless transaction to people and for that marks will be allotted.  Opposition is criticizing the issue.  There is spurt in cashless transaction mission and neck throat competition noticed between varied companies.  Open any channel within a minute you will find e-payment advertisement.  Government is going to promote digital transactions in association with NITI aayog by announcing weekly and quarterly lucky draws.  The scheme would initiate e-money in public of lower strata.  So government is working on many fronts to bridge the gap between urban and rural masses.  The state government is promoting digital economy using its resources.  The Maharashtra state is rising the force of two lakh volunteers to study individual sector at rural and urban area and suggest ways and means to align with a cashless economy.  The target is 50% cashless transactions within a span of a year.  

            Income Tax department is suspecting 1% account holders have deposited black money.  They will have to scrutinize around 40 lack accounts.  Total strength of IT department is 8000 of which only half staff will be available for scrutiny.  How to complete gigantic task within stipulated time is a big problem.  The capacity of IT department is hardly three lakh cases in a year.  Innovative approach - especially computer programming for data analysis – is needed for careful selection of suspicious cases.  Government has issued directives to IT officials to avoid undue harassment to general public in view of reopening of past assessments and ensure necessary and strict compliance.                             

            Demonetization has derailed the robust economy, said Mamta Banerjee, West Bengal CM while squarely attacking PM move on e-economy.  Prime Minister while addressing party workers of Gujarat state asked them to promote digital transactions policy to help bring people under cashless economy in a bid to curb corruption.  The observations made by P. Chidambaram as usual are half true.  He said “Banks run out of cash within a few hours of opening and most ATMs are dry.  All major markets remained closed.  Retail business is down by 80%.  Millions of people have been deprived of their daily wages”.  Some hiccup is there otherwise things are smooth if you take stock of the entire country.



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