The grim spectacle of a cash crunch, took centre stage of deliberations at the 202nd State Level Bankers Committee (SLBC) meeting held at Grievance hall near the Chief Minister’s residence on Thursday.
Squarely blaming the bankers for the cash crunch, Chief Minister N. Chandrababu Naidu asserted that there was no comprehensive policy on money circulation, regulation and to promote the digital transactions.
Deep cut in merchant discount rate (MDR) and incentivisation of the digital transactions were a few of the important suggestions made by the Chief Ministers’ panel on demonetisation. The banks, however, were penalising the honest and genuine people by not encouraging the digital transactions, he said, adding, “currency shortage will have a negative impact on the growth rate and society.”
‘Homework not done
on FRDI Bill’
Referring to the Financial Resolution and Deposit Insurance (FRDI) Bill, Mr. Naidu said that the banks failed to create confidence among the public regarding the Bill. The people were preferring keeping cash at their home rather in banks. The deposits were coming down. Referring to the ‘meltdown’ of the Punjab National Bank (PNB), he said, “When banks fail to manage at the macro level, they cannot do anything at the micro level. The banks are virtually creating panic among the public.”
It was not just the common man, who was feeling the pinch, but the State government too. Pooling up ₹450 crore cash required to distribute the pensions every month had become a difficult task.
“How many times I have to shout at, plead, request and beg (the banks) for the cash? Why there is a cash crunch in a civilised society?” he asked.
Explaining the reasons for the cash problem, Reserve Bank of India (RBI) Regional Director R. Subramanian said that Andhra Pradesh received the highest amount of currency compared to other States.
The situation would ease in 3 to 4 weeks. The RBI has ramped up printing of currency notes. The RBI would despatch ₹500 crore immediately to A.P., he said.
Finance Minister Yanamala Ramakrishnudu, Andhra Bank Executive Director AK Rath, and SLBC convener KSD Siva Vara Prasad were among those present.
