With the continuing public distress following the implementation of the demonetisation policy by Prime Minister Narendra Modi, the government had taken several steps to ease the exchange of banned currency notes and help people with the access of new notes.
Citing the increase in the circulation of black money in the country, the Prime Minister had, on November 8, initiated the note-ban policy, following which currency notes of the denominations Rs 500 and Rs 1,000 had been banned and replaced with new notes. The anti-graft policy implemented by the Modi-government, created a chaotic situation among the common people, with many standing on long queues, to replace their old currency notes, thereby making an attempt to save their cash from turning into useless pieces of papers.
Concerned over the continuous stress on people trying to grab hold of the new currency notes and with constant criticism from the opposition parties Narendra Modi had held a meeting, for the second time, to review the situation relating supply of usable cash to the common people.
Here are the few decisions taken by the Modi government, to ease the exchange of currency notes, thereby finding a solution to the existing crisis:
Access to the Rs 100 notes:
After the ban on Rs 500 and Rs 1,000 notes, most ATMS had been seen closed most times, due to the increasing demand of money by the common people, as the refilling frequency of the ATMs had been low as yet. Citing that the people must be ensured of sufficient usable cash, the government had urged the banks to keep the ATMs filled with enough Rs 100 notes till enough Rs 500 and Rs 1,000 notes are returned to the government. The government had also issued orders against the closure of the ATMs at most times of the day.
Calibration of ATMs:
Since the highest denomination of currency notes available in the ATMs are Rs 100, and the flow of such notes are too frequent, driving the money machines to run out of cash, the calibration of the ATMs should have been done much earlier. While the highest usable currency notes are already available in already calibrated ATMS, the government will be making an attempt to make other ATMs available with such notes.
Replacement of currency notes through DCCBs:
Citing limits applicable to the banks, the central government had issued instructions to the District Central Cooperative Banks (DCCBs) to replace old currency notes with the newer ones. The government had also made attempts to make sure the DCCBs are supplied with enough currency notes.
Replacement of useless currency notes:
Since the banned currency notes started getting accumulated in Banks and Post offices the central government had assured the shifting of such notes and replace them steadily with newer ones.
Use of e-wallets:
Since the availability of the paper currency faces acute crisis among people, a parallel replacement of it with e-money had been a common medium of exchange among many. The government had formed a new technology team to popularize e-wallet among the common people.