Need to take suitable steps to address currency crunch: BEFI

UNI

NEW DELHI

In view of the ongoing crisis of currency across many parts of the country with  ATMs running out of cash since last few days, the Bank Employees Federation of India (BEFI) has suggested that the government and the RBI take up appropriate measures to restore confidence of the people in banking system.

In a statement on Wednesday, BEFI General Secretary CP Krishnan said there are certain basic measures that the Government and RBI have to take to overcome this shortage.

He said, the cash in circulation is 18.3 lakh crores of rupees which is higher than pre-demonetization level, according to the RBI.

‘’But as and when the demand for cash grows, there needs to be increase in cash circulation.  Accordingly the cash in circulation has not increased to the extent of the demand.  That needs to be increased, ‘the statement said.

He said that Rs 2000 notes were introduced in the place of 1000 rupees notes when the proclaimed motto of demonetization was to eradicate or reduce black money.

‘’There is a need to reintroduce 1000 rupees notes and gradual withdrawal of 2000 rupees notes besides printing 500 rupees, 200 rupees and 100 rupees notes in large numbers, ‘he said.

The BEFI has also suggested immediate withdrawal of the FRDI bill to instill confidence among the public, a section which have cancelled their deposits and are keeping the money in the form of cash due to an apprehension that their money would not be available at the time of their emergent need, thus creating shortage of currency in banks.