Since the demonetisation that happened on November 8th, there have been positive and negative reactions coming from people. Even though some insiders from the Ministry of Finance have confidentially agreed that the government and banking system was not fully prepared to cater the rush that happened in the aftermath of the announcement. However, that doesn’t mean that the government was not fully prepared at all. The currencies were printed sufficiently and the Reserve Bank of India (RBI) had taken all measures to channelize the money supply into banks smoothly. Despite all these efforts, what was the factor behind cash crunch in the market? Whether people themselves were hoarding it with a fear that they may not get cash with ease from the ATMs? Or is it because of some other factors?
It has become common to see ‘NO CASH’ board in front of ATMs. These days even banks are putting it up on their doors. But with the recent evidences, it has been found that, it is not necessary that cash has been exhausted in the banks. Rather, it has been found out that the managers of some banks have been helping their rich customers to get cash by putting boards like this! That too it is not a free gift for those special customers for doing good number of transactions. Instead, the bank managers earn 25 to 30 percent of the total amount as commission. With a rough estimate, it has been found that, for every Rs. 10 lakh of old currency notes, they are giving Rs. 8 lakhs through backdoor.
Bank managers have found out several ways to turn black money into white. Initially they will credit money into those accounts which are lying inactive for several years. Then the manager will force the customer to give that money back to them or it might happen that the actual account holder may not come to know at all about these transactions and the bank officials themselves might be operating these accounts!
Since there is no need to show any documents to make a Demand Draft (DD) up to Rs. 49,000, many people are getting a DD for themselves by depositing their old Rs. 500 and 1000 currencies which are mostly black money and since within three months, DDs can be cancelled after paying a cancellation fee and the amount can be taken back in the form of Bank cheque. So, the black money is whitened easily!
Though, large number of bank officials have worked continuously for long hours to help people get cash and have been following KYC (Know Your Customer) norms, some black spots like these are bringing the morale of the whole system down! It is some of the bank officials who have been the responsible for cash crunch and we have been scolding PM Modi for all difficulties in life! That is the irony!
– Akshara Damle
You can reach to author on Twitter @aksharadamle