Dear Urjit Patel...
As the Monetary Policy Committee meets today on a possible rate cut, few words to the RBI Governor on the plaguing ‘demonetisation’ issues
Long lines at the few working ATMs in cities across the country have been a common sight nearly a month after demonetisation. Most of the ATMs have their shutters downed or have the “No Cash” placards. As per reports in the media, over 80 persons across the country have died waiting in the snaking queues. What is the task force constituted by the RBI doing? Rs 100 notes are scarce and the new Rs 500 notes non-existent. Who will give change for Rs 2,000 if something worth Rs 200 is bought? Small traders are bearing the brunt of the Rs 20,000 per week withdrawal limits, as most of them pay their employees in cash. Leave alone ATMs, many bank branches in cities are out of cash. Where are the new Rs 500 notes? And Rs 100 notes do not need any recalibration, so why weren’t they made available earlier? Weren’t you in the loop in the weeks prior to the announcement that was made on November 8? Cut to the present, on the occasion of the fifth bi-monthly meet today, most analysts are expecting a significant rate cut, in the order of around 50 basis points (bps). In light of the current situation, this would help rate-sensitive sectors such as consumer durables, auto, consumption and other sectors. Hope you rise to the occasion and alleviate the pain being faced by the common man, on both the cash crunch and the interest rate.