By haphazard demonetisation and more absurd introduction of Rs 2000 new currency notes has played havoc with the banking system. With the demonetisation of Rs 500 and 1000 currency notes there was no point of launching 2000 rupee note.
In the absence of Rs 500 - 1000 notes it could not get exchange in dealing with it. Now it admitted that 70 per cent of Rs 2000 notes has gone out of circulation and staked as black money and 30 per cent of it is in circulation.
To aggrevate the situation further the Government in a dispisable way announced to bing in new legislature the Financial Resolution and insurant Act, with a provision that if a bank incur huge losses the bank customers money be taken away to salvage the bank. It caused panic among bank customers and they withdrawal huge amount.
Alongwith it now a Government has admitted that it had stopped the printing Rs.2000 note to fall it out of circulation gradually and silently.
The number of massive bank fraud people rightly realized that their money would be at risk in bank and they are withdrawing the money.
When there is severe and serious cash shortage the Government has started printing Rs 500 and 1000 notes.
The bank rules have been made more trouble some. Till now the customers were told to withdraw with the withdrawal slip but now they are asked to have money by, ‘self’ cheque. The charges of bank cheque books has been increased.
The Government is giving false information to the keep the public anger subdued. The Government said there is no dearth of cenancies in to country and with the banks. Then the question is if it is so why there is cash shortage in the country, where is 70 per cent of Rs 2000 note have gone.
At the same time it is said that in the ATM the tray for keep keeping Rs 200 notes were not ready and this has also caused cash shortage in the ATM. But the facts at the bank level are that most of the ATM are still dry.
In rural areas the ATM situation still very worse. The Government and RBI arguments do not inspire confidence with public. The festivals are there all these years and nothing new on it. The cash crisis can not be attributed to any festival.
The Congress President Mr Rahul Gandhi is correct to say that Modi Government has ruined the banking system.