Published On : Thu, Nov 10th, 2016

Cait urged fm to authorise retail traders to accept high denomination currency


Nagpur: As a consequence of discontinuation of Rs. 500 & Rs. 1000 Notes by the Government, the commercial markets over the Country wore a gloomy and deserted look . Consumer footfall in the markets was very less in comparison to normal days. Traders particularly the retailers had slack business activities. Salesmen at the retail counters were seen sitting idle. CAIT. Rural retailers from Taluka and other Moffusil areas who generally visit nearby District markets for procurement of goods had to remain at their respective places for want of sufficient funds of acceptable denomination. APMC and Mandis across the Country had a very less business as farmers who had brought their produce for sale in the market has to face a nightmare when he could not get money against his saleable produce due to non availability of smaller denomination of notes. The logistic sector came to standstill as the truck drivers had only high denomination notes which caused blocks in smooth movement of transportation. Long ques were seen at petrol pumps, banks, ATMs etc.

However, interestingly importance of digital payments emerged as people using various digital payment modes like Debit and Credit card, Mobile payment applications of Banks & other technology providers were successful in transferring money through digital payments for their day today routine expenses. A clear cut distinction between technology users and users of traditional mode of payments was visible.

CAIT National President B.C.Bhartia & Secretary General Praveen Khandelwal while appreciating the move of the Government to discontinue higher denomination notes to curb black money said that smooth business activities must not get hampered and as such the CAIT has demanded the Finance Minister to extend authority to accept high denomination currency notes to retail traders also who are directly selling to consumers with a cap that maximum one high denomination note per consumer is accepted with proper cash bill since retail trade is an essential services to the Society having a last mile connect with the people and consumer. Such a step will make the markets move smoothly. The restriction of Rs. 10000 one time withdrawal from Banks is affecting wholesale and retail trade . It is also affecting contract payments. CAIT urged the Finance Minister that distinction must be made between saving account and current account . There should not be any cap on the amounts withdrawn from current and cash credit account.

They further said that in order to deal with menace of fake currency notes which is devaluing the currency thereby increasing inflation it was imperative upon the Government to take immediate steps to flush out bad money and infuse good money in the economy. It is noteworthy to mention that Govt wanted to withdraw all currency notes printed prior to 2005 since they carry less security features. Step taken by the Government was need of the hour. Any delay could have proved to be suicidal for Indian economy. CAIT appreciate the timely decision which will help in strengthening of economy in long run.