Etela Rajender says cash crunch still a major drawback

     Written by : SMTV24x7 | Mon, Jun 26, 2017, 12:48 PM

Etela Rajender says cash crunch still a major drawback

Hyderabad June 26: The Telangana Finance Minister, Etela Rajender has been said that Cash crunch in banks, a phenomenon still witnessed widely in the State post the demonetization exercise, was still hurting, more so with the peasant community, which is in the thick of Kharif operations in the State.He said here on Sunday.

We knew that The Prime Minister has been banned the high demonetized notes on November 8th, 2016, from this perspective so many people had suffered to get the cash

Addressing a news conference along with the Minister for Forests and BC welfare, Jogu Ramanna, he said the State had asked the RBI to provide more cash to the State and help replenish the banks and their ATMs with adequate currency.

the RBI will be shipping Rs 1,700 crore to the State in a couple of days. The State had, in fact, sought Rs 500 crore more, enabling the banks to cater to the cash needs of the farm sector. Though the Centre had promised normality with the money in circulation after three months of demonetization, people of Telangana were still facing hardships.

The Minister said that the agricultural activities were linked more to cash-based transactions.

The farmers cannot be expected to pay in cheque while hiring workers, engaging tractors and purchasing seeds. He appealed to the bankers not to put the farmers to any more hardships as the agricultural operations had picked up momentum. Farmers needed cash to carry out their activities at this moment, he said.

He assured the farming community that the State government would take all steps to ensure smooth operations during Kharif. He recalled that after demonetization, banks in the State had received Rs 53,000 crore. But 95 percent of the money was received in Rs 2,000 notes. Putting high denomination notes into circulation further added to their travails.