Letter to BS: Poor management, fixation on black money led to cash crunch

With the economy growing hesitantly after a damaging hiatus, the Rs 2,000 note had formed the bulwark of its cash fluidity

Business Standard 

With most old Rs 1,000 and Rs 500 back in bank vaults, it was clear that the spectre hovering over revenue leakage had little to do with the high denomination currency in circulation and was much more about inadequate digital forensic intelligence, poor staff strength and lax control over an archaic tax collection system. With the economy growing hesitantly after a damaging hiatus, the Rs 2,000 note had formed the bulwark of its fluidity and yet in misplaced wisdom driven by its genetic fixation on per se, these were not only taken out from print but worse, held back from circulation. The result is proof of the lack of clear objectives compounded by poor policy reflexes on provisioning.

R Narayanan

Navi Mumbai

First Published: Mon, April 23 2018. 01:10 IST