Centre plans to ease cash withdrawal restrictions
The restrictions on cash withdrawals will be first eased in the case of co-operative banks.
New Delhi: The government indicated on Thursday that it will start easing restrictions on cash withdrawals once 80 per cent of the new currency introduced following the demonetisation is re-channelised through bank deposits. The restrictions on cash withdrawals will be first eased in the case of co-operative banks and then for all the scheduled commercial banks.
Meanwhile, the government which was talking a complete cashless economy on Friday subtly shifted the goal post. Union finance minister Arun Jaitley told a Parliamentary panel that digital transactions are a parallel mechanism, not a substitute, for cash transactions. Union finance ministry also cast a doubt on RBI data that Rs 12.44 lakh crore demonetised currency has been deposited in banks and asked RBI to re-verify it. Economic Affairs secretary Shaktikanta Das said that RBI may be double counting in some instances.
“There are a lot of areas where we feel there could be double counting. So we have identified those areas and we have requested RBI and banks to again double check. “So a process of correction, checking, counter checking of the figure, due diligence is being done to see there is no double counting of the figure.... We think there is scope for double counting and therefore the scope for verification of those figures are going on,” Mr Das said.
He said that supply of new currency notes will considerably improve in next 2-3 weeks. The secretary said that by month end about 50 per cent of the Rs 15 lakh crore worth demonetised currency would be injected into the system. He said the government has stepped up printing of Rs 500 notes and as its circulation increases, people would also take out the Rs 2,000 notes they were hoarding so far.
Meanwhile, Mr Jaitley said that cashless economy is actually a less cash economy as no economy can be fully cashless. Finance minister said that government is trying to encourage digitisation as much as possible. He said that less cash can be gradually substituted to the possible extent through digital payments/transactions.