Cash move left banks crippled, says federation

Kolkata: The

Bank

Employees Federation of India on Thursday criticized the Centre’s demonetisation move without taking care of ground reality — acute liquidity crunch that has left agriculture in crisis, a poor person without his bread, trade crippling and economy tumbling. “86% of 22 billion cash in circulation are in Rs 500 and Rs 1,000 denomination. So, it is impossible to replace the high value currency with Rs 100 notes. Rs 2,000 only adds to the trouble as liquidity is the issue,” said Pradip Biswas, general secretary of Bank Employees Federation of India.

The federation has also accused the Union government of undermining the RBI, a constitutional authority in banking system of the country. “Demonetisation is an exclusive domain of the RBI. Nobody can make an announcement on it. But everyone else other than the RBI governor is making announcement.”

The federation said RBI Kolkata has gone dry as far as changes are concerned. Bankers are exposed to collective ire of people who are facing the ordeal, said Joydeb Dasgupta, secretary of BEFI.

BEFI has questioned the necessity of demonetization. Indian Statistical Institute has put only 2.8% of the cash in circulation as counterfeit.