Finance Secretary Ashok Lavasa on Friday addressed the media and spoke about the withdrawal limit following demonetisation.
Finance Secretary Ashok Lavasa on Friday addressed the media and spoke about the withdrawal limit following demonetisation. Lavasa said that the cap on cash withdrawal was to be reviewed after December 30, 2016, which happens to be the last day to deposit the old denomination currency of Rs 500 and Rs 1000 notes.
When Prime Minister Narendra Modi had announced the demonetisation drive to ban the use of Rs 500 and Rs 1000 notes after midnight. The Prime Minister had said that the old notes could be deposited into bank accounts till December 30, 2016. The PM had also announced a limit on withdrawal of cash from banks and ATMs. While the opposition has been constantly protesting the move, calling it a huge mistake by the Prime Minister’s ego, PM Modi had urged the people of the nation to have patience for 50 days. The Pm had said that every good task does cause a little discomfort. He had advocated for “short term pain for long term gain”.
However, the opposition had strongly disagreed with him citing the inconvenience faced by the public. Besides, the absence of the Prime Minister in the parliament did not help either as both the Houses were regularly disrupted. The RBI, on the other hand, had urged the people to not hoard up the money they had as the Central bank assured the printing of sufficient amount of notes to fill the void created by the taking out of crores of Rs 500 and Rs 1000 notes from the market.
While it cannot be denied that there has been a cash crunch in the country owing to the demonetisation policy, it cannot be denied that the move has made the untaxed money stashed for decades obsolete. However, it must also be understood that cash crunch has taken lives and one can only hope that the following the government’s review on December 30, the situation gets back to normal.