unavailability of coins and small denomination notes
Due to scarcity of small coins and small denomination notes the monthly expenditure and indirectly inflation is rising.
Lets understand with an example, suppose i buy 2 litre milk from a shop for rs 96. and i offer rs 100 to the shopkeeper . On the pretext of scarcity of coins he gives toffes instead rs 4 change, thus expenditure is on the milk is rs 100 not rs 96. if we see my expenditure is increased more than 4 % . and indirectly we can see the effective cost of 2 litre milk is rs 100 not rs 96 . hence, causing inflation. some people can argue that u also got toffees with milk . but i say utility from the toffees i got is zero because i didnt need the toffees.
today almost all the people use ATMs for drawing the money from the bank and the ATMs dont deliver notes less than rs 100. it is shorting the supply of small denomination notes thus will be burden on the expenditure in bigger form and inflation.
government should think about it and take necessary steps to make the coins and small denomination notes available to avoid imbalances . more
Lets understand with an example, suppose i buy 2 litre milk from a shop for rs 96. and i offer rs 100 to the shopkeeper . On the pretext of scarcity of coins he gives toffes instead rs 4 change, thus expenditure is on the milk is rs 100 not rs 96. if we see my expenditure is increased more than 4 % . and indirectly we can see the effective cost of 2 litre milk is rs 100 not rs 96 . hence, causing inflation. some people can argue that u also got toffees with milk . but i say utility from the toffees i got is zero because i didnt need the toffees.
today almost all the people use ATMs for drawing the money from the bank and the ATMs dont deliver notes less than rs 100. it is shorting the supply of small denomination notes thus will be burden on the expenditure in bigger form and inflation.
government should think about it and take necessary steps to make the coins and small denomination notes available to avoid imbalances . more
Viewed by 17
i think all the shopkeepers or atleast medium and big size shop keepers should be forced to keep the debit card machines for the transaction where people can pay by their debit card, prepaid cards or with credit cards. it will solve not only the above mentioned problem but it will regularize the money which will be deposited to the bank. Banks will get the funds which will be fruitful to the economy . more
Sep 29
To avoid such situation, I usually pay them at the end of month. Suppose daily I spend Rs 96 for a month, it comes around rs 2880, I pay them 2580 or 2600 and carry forward the balance. Its not a problem anymore for me. For daily material, I use this technique, for big malls and all, I usually pay directly by debit card, not even credit card now. That saves my time and avoid unnecessary situations too. more
Sep 28
