Highly experienced Economist shares his views on alternate solutions to the worsening cash flow situation even one month after the #Demonetization move by the Prime Minister
CASH CRUNCH – SOLUTION
How to ensure that lines before banks disappear, noise of parliamentarians subside, subdued business activities grows fast and RBI / Banks & Govt. heave a sigh of relief?
The shameful acts if some of the bankers and corruption in the banking institutions, and inefficient, slow and unplanned distribution system of cash, have complicated the knots so much that it is necessary to think of solutions & solutions only, because roll back of demonetization is impossible after 35 days.
The hydra headed problem can be solved or at least the points of the public can be mitigated if Bankers reach the public. The ways to open the knots are:
The hydra headed problem can be solved or at least the points of the public can be mitigated if Bankers reach the public. The ways to open the knots are:
1.Payments in villages should be made through Panchayats by the designated banks for the villages.
2.Payments to workers in the organised sector should be through the employers with the help of the banker where employer has the account.
3.Payments to workers in unorganized sector should be through their employer / contractor with the help of their bankers.
4.Small shopkeepers / self-employed / pensioners etc. should be allowed access to banks for withdrawing from bank on weekly / monthly basis preferably on weekends / holidays.
5.Panchayats, Employers, Contractors, must workout the forecast of their requirement on weekly /fortnights basis and forward to their bankers for arranging suitable funds.
2.Payments to workers in the organised sector should be through the employers with the help of the banker where employer has the account.
3.Payments to workers in unorganized sector should be through their employer / contractor with the help of their bankers.
4.Small shopkeepers / self-employed / pensioners etc. should be allowed access to banks for withdrawing from bank on weekly / monthly basis preferably on weekends / holidays.
5.Panchayats, Employers, Contractors, must workout the forecast of their requirement on weekly /fortnights basis and forward to their bankers for arranging suitable funds.
The above suggested way is one way to solve and the other is to use “Chamre Ka Sikka” for at least six months to give relief to all.
P.N. KUMAR
ECONOMIST
pnk2001@gmail.com
GURGAON
ECONOMIST
pnk2001@gmail.com
GURGAON