The shortage of cash still persists in the country. The jurisdiction of Central Government and the Reserve Bank of India is entire country, when recently some states on Northern and North Western India faced severe cash crisis.
Now it appears that at that time the Reserve Bank and Central Government diverted the cash supply from Eastern and North Eastern Indian states to North and Western States. It is no solution.
As a result now the Meghalaya, Nagaland, Manipur, Mizoram and Arunachal Pradesh are facing the cash crunch problem. In these days the ATM are dry with “No Cash” card board notice hanging there.
The Modi Government with demonetization created financial crisis in the country. It deliberately acted in certain ways to help the holders of the black money. Although it was its election promise to bring back black money. But in a sinister way it generated the black money right inside the country.
The Modi Government demonetized the currency notes of Rs.1000 and Rs.500 but instead of replacing it with new design notes it introduced Rs.2000 note for the first time in the country. When there were no Rs.1000 and 500 notes the note of Rs.2000 caused much difficulties in circulation.
The black money holder have cornered the Rs.2000 notes to convert their money in new currency. Some top bank officers were caught in helping them in this operation.
Now it is disclosed that 70 per cent of Rs.2000 notes were cornered in black money and 30 per cent of it are in circulation. The RBI recently introduced Rs.200 new notes and it has also appears to have disappeared. It is not seen much in circulation.
In total there is serious currency shortages in the country and the Reserve Bank is indulging in patch work solution by diverting currency supplies from the state to state. The trade and commerce of the country is seriously affected with shortage of money in market and circulation.
In the Eastern States the banks have said that the RBI is not supplying adequate currency notes in the regular flow. The people are panicky on these states also likewise as they were in the Northern States some bank at such crisis.
The financial circles say that now people are quitting ATM system and returning to withdrawal from the bank branch. The Modi Government and the RBI are solely responsible for the people losing confidence in the ATM system and leaving it.
In Eastern State the banks are diverting cash from rural branch to urban branch to maintain bank operations, rural branch is have no cash for routine transaction.
The people of other states also apprehensive of cash crisis in their states and other states heavy withdrawals are being carried out. The financial circles feel that this may result in currency crisis in the entire country and financial anarchy and financial emergency in the nation.