RBI not able to supply enough notes to banks is major issue locally

Ahmedabad: Several issues faced by commoners today.

Rs 500 note was almost like Rs 100 for most. It had become too common and even poor people had some notes of Rs 500. Now when Rs 500 and Rs 1000 notes are invalid, there are two options for commoners. To deposit old notes and later withdrawal of new notes from the bank is one option. The other option is to go to the bank and get Rs 4,000 worth new notes in exchange of same amount of old notes.

Now the problem is, the banks are complaining that Reserve Bank of India(RBI) has not sent enough money, and therefore new notes can’t be supplied to all needy people standing in queues.

The banks shut down early and even don’t start functioning due to lack of new notes. The reason is simple that RBI is not supplying enough new notes.

The other issue is usability of new notes.

Rs 2,000 new notes can not be utilized in market because everyone is going to seek ‘Chhutta’ or say change. So you stand up in queue and fetch new Rs 2,000 note but if you go to vegetable shop or drug store or at any other such place, the shopkeeper is going to seek ‘Chhutta’. After all he is also in tight situation. He can’t give you old notes of Rs 500 and Rs 1000 and at the same time he hasn’t enough availability of Rs 100 notes.

It seems the government is not best at management this time. The government can complain that any size of management wouldn’t work due to the scale. But government could ensure availability of more Rs 100 notes. Supply logistics could be better.

It’s temporary phenomena and for greater good but markets are not working, agriculture yards are closed and there are many other issues. Speedy normalization of situation will need proper management which could be planned better in advance.

Minister of State (Finance), Government of India standing in one of queues at bank in Jaipur

DeshGujarat