Attributing the deceleration in overall business activities, particularly in Micro, Small and Medium Enterprises (MSME), to the insufficient supply of money to the market, the Hyderabad Karnataka Chamber of Commerce and Industries (HKCCI) urged the Union government and Reserve Bank of India (RBI) to make necessary arrangements to ensure that there would be perennial money supply to the market through ATMs.
In a letter written to Union Finance Minister and RBI Governor on Tuesday, Amarnath C. Patil and Shashikanth B. Patil, president and secretary of HKCCI, provided a list of measures to be considered to increase the cash flow into the market through ATM network across the country.
“The business environment is undergoing very hard days and the businesses together with MSME units are on the verge of collapse affecting GDP growth. One of the reasons, we believe, for this state of the economy is the lack of free flow of money to the market... With the improper supply of money through ATMs, the people are losing faith in the banking system adding to the woes of the present-day business and industrial environment... With the lack of money supply, the MSME units are facing hardship leading to a decline in GDP growth,” they said.
They urged the government and the RBI not to charge any fee for withdrawing money from ATMs notwithstanding the limit for withdrawal. They also suggested making arrangements to ensure that money is available round the clock and all the seven days of the week including the Sundays and other holidays in all ATMs.
Their other demands included removal of the upper limit for withdrawals through ATMs and doing away with levying of handling charges in the banks as a temporary measure to stimulate the economy.
“Money to the tune of ₹8.9 lakh crore is in circulation but the sorry fact is that the banks are facing a shortage of funds. It means that there is circulation of money but not through the banks.