Saturday, June 12, 2021
HomeOpinionDiaryImpact of demonetisation on banking system

Impact of demonetisation on banking system

Prime Minister Narendra Modi has taken the boldest decision in the financial history of independent India by scrapping currency notes of Rs.500 and Rs. 1000 notes. These steps are in sync with our commitment to make our economy stronger, more developed and an economy where the interests of honest and hardworking citizens are protected. As ATMs were reopened after two days, people queued up to withdraw money in all parts of the country. With Rs. 500 and Rs. 1,000 notes no longer considered legal tender, ATMs will disperse only lower denomination currencies. The government should now take steps to bring back black money stashed in foreign banks, and ban cash donations to political parties. Both Nationalised Banks and new generation banks are working day and night to bring back old Rs.500 and Rs.1000 notes and introduce new set of notes to the market in a phased manner.

RBI is providing the remittance facility of cash to the member banks and thereby the banks keep sufficient stock of cash for the circulation as per the indent of the banks. These banks stock the new notes in their currency chests across the length and breadth of the country to help our member bank branches to keep sufficient supply for daily circulation and meet the demand of clients.

Slowly and steadily the black money is being unearthed. The common man has an opportunity to deposit his hard earned money into savings accounts and thereby avoid IT related queries later on.  For exchanging old notes a form has to be filled with all the details contained in that. People can exchange Rs 2,000 over the counter of the banks. Some banks manage the flow of cash both inward and outward in a most efficient way.

Forming proper queue system and distributing the work evenly to four to five cash counters the crowd is disbursed in a time bound way.  The team work of staff is excellent in this hour of crisis. From the security guard to the Bank Manager everyone is trying hard to serve the clients in the best way possible. Female employees proved most efficient as they stick to their seat to complete the task assigned to them. Even other staff members like sweeper lend their helping hand to ease out the pressure. In all it is the co-ordination of the staff that paves way for meeting the task of shouldering the extra burden after demonetisation of Rs.500 and Rs.1000 notes.  Demonetisation will affect terror financing very hard and thereby we can get some relief from cross border terrorism and prevent frequent terror attack as well.  Black money is unearthed in large numbers and a national safety and security will be achieved sooner or later.

(The views expressed by the author in the article are his/her own.)

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