500/1000 Note Demonetization: Gaps/Negative Impact
1.Smaller denomination notes (10, 20, 50, 100) have become short in the market as they are not easily available in banks but widely in demand for day to day small transaction
2.Banks are giving Rs. 2000 notes-middle class and poor do not want them but rich want to have them as they are very easy for hording the illicit money newly generated.
3. The Govt. before demonetizing the 500 & 1000/- nots, openly informed about the intention of new 2000/- notes coming to market. Hence in that guise the RBI could have made secret arrangements to make software (board) calibration technical work for replacing the existing one for old notes. If this precautionary work had been done most of the ATMs could have been replaced with newly calibrated boards to suit new Notes with out much delay.
4.Long lines can be seen outside banks: The customers of banks as well as outsiders could have been asked to remit all their defunct old notes as one time affair in their account. If they do not have, special arrangements could have been made to open new accounts with KYC details. The Banks could have separate counters outside the banks (some other convenient places) for opening new accounts. No ceiling of amount should have been announced as this will deter those who have high-count old notes. The IT deptt could have taken their action with the bank new accounts a little bit leisurely. The public would not have agitated.
The villagers also could have permitted to remit one time deposit of old notes in PRADHAN MANTHRI SCHEME ACCOUNT /village level co-operative Bank also and get their new notes after few days. By this they need not repeatedly come for conversion of notes as was some time back.
5. Banks are not well prepared as this is sudden. The RBI could have airlifted new adequate new notes to State Branches of RBI who can distribute them to cash chests by local airlines 9th night itself. In the mean time all banks could be asked to allow all those who do not have account in any bank (with KYC) could have permitted to open a/c forth with with Aadhar and other documents, Instead of conversion of notes on the 9th instant. If individuals remit all their old notes in the account, they may be permitted to withdraw subject to a maximum as specified by RBI as per available note stock. The IT procedure could be taken a little bit leisure as IT deptt would be having all the details they want to send notice.
6.The people are struggling to maintain do to day expenditure for want of small denominations.
7.Because of sudden announcement all tourist including foreign tourists, those who are sick intend to enter in to hospitals, who are going to conduct marriages, sudden demise expenses, etc have suffered a lot. However, considering the good motive behind this move, many of our people tolerate this except those who are instigated by opposition party .
8.exploitation takes place by coercing public to buy for old notes to its full value., demanding commission for sales against old notes,
10. Instead of exchanging old notes for new notes or small denomination notes, one bulk remittance at banks should have been encouraged.
11.Many Banks are still understaffed and cannot manage the crowd. The voluntary organisations and NGOs could have come to the request of people in queue by helping them to write forms, providing water, physical help for old and physically defective people.
11.The State Govts should have stepped in to this and ordered for better police regulation as is done in the case of Polling affairs, with adequate forces. The Center should also ordered so contingency of forces to each state after one day. Small street hawkers could have been permitted to sell the needs of the crowds.
12.The Govt of India, immediately should have announced the list of organisations who should accept the old note, essential service rendering organisations, like pharmacies, hospitals etc and the punishment for not acceptance of old notes till the matter settles down. more
2.Banks are giving Rs. 2000 notes-middle class and poor do not want them but rich want to have them as they are very easy for hording the illicit money newly generated.
3. The Govt. before demonetizing the 500 & 1000/- nots, openly informed about the intention of new 2000/- notes coming to market. Hence in that guise the RBI could have made secret arrangements to make software (board) calibration technical work for replacing the existing one for old notes. If this precautionary work had been done most of the ATMs could have been replaced with newly calibrated boards to suit new Notes with out much delay.
4.Long lines can be seen outside banks: The customers of banks as well as outsiders could have been asked to remit all their defunct old notes as one time affair in their account. If they do not have, special arrangements could have been made to open new accounts with KYC details. The Banks could have separate counters outside the banks (some other convenient places) for opening new accounts. No ceiling of amount should have been announced as this will deter those who have high-count old notes. The IT deptt could have taken their action with the bank new accounts a little bit leisurely. The public would not have agitated.
The villagers also could have permitted to remit one time deposit of old notes in PRADHAN MANTHRI SCHEME ACCOUNT /village level co-operative Bank also and get their new notes after few days. By this they need not repeatedly come for conversion of notes as was some time back.
5. Banks are not well prepared as this is sudden. The RBI could have airlifted new adequate new notes to State Branches of RBI who can distribute them to cash chests by local airlines 9th night itself. In the mean time all banks could be asked to allow all those who do not have account in any bank (with KYC) could have permitted to open a/c forth with with Aadhar and other documents, Instead of conversion of notes on the 9th instant. If individuals remit all their old notes in the account, they may be permitted to withdraw subject to a maximum as specified by RBI as per available note stock. The IT procedure could be taken a little bit leisure as IT deptt would be having all the details they want to send notice.
6.The people are struggling to maintain do to day expenditure for want of small denominations.
7.Because of sudden announcement all tourist including foreign tourists, those who are sick intend to enter in to hospitals, who are going to conduct marriages, sudden demise expenses, etc have suffered a lot. However, considering the good motive behind this move, many of our people tolerate this except those who are instigated by opposition party .
8.exploitation takes place by coercing public to buy for old notes to its full value., demanding commission for sales against old notes,
10. Instead of exchanging old notes for new notes or small denomination notes, one bulk remittance at banks should have been encouraged.
11.Many Banks are still understaffed and cannot manage the crowd. The voluntary organisations and NGOs could have come to the request of people in queue by helping them to write forms, providing water, physical help for old and physically defective people.
11.The State Govts should have stepped in to this and ordered for better police regulation as is done in the case of Polling affairs, with adequate forces. The Center should also ordered so contingency of forces to each state after one day. Small street hawkers could have been permitted to sell the needs of the crowds.
12.The Govt of India, immediately should have announced the list of organisations who should accept the old note, essential service rendering organisations, like pharmacies, hospitals etc and the punishment for not acceptance of old notes till the matter settles down. more
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