VIJAYAWADA: Chief Minister N Chandrababu Naidu has yet again decided to write a letter to the Central Government to tide over the cash crisis in the State following demonetisation of Rs 500 and Rs 1000 notes.
The letter, to be addressed to the Prime Minister, the Finance Minister and the RBI Governor, will have four important points - request for Rs 10,000 crore of smaller denomination notes of Rs 10, Rs 20, Rs 50 and Rs 100 along with more new Rs 500 notes; supply of POS (Point of Sales) machines at 80 per cent subsidy to the State, plea to encourage online transactions by making it cost-effective by providing incentives to users and permission to cooperative banks to accept Rs 500 and Rs 1000 notes like banks for payment of dues by farmers.
Disclosing this to mediapersons at the Central Command and Communication Centre here Friday, the Chief Minister said shortage of smaller denominations has led to a crisis in the State, affecting people from all sections of the society. “The State government is doing all it can to address the situation and ensure that people are not put to inconvenience. But at the same time, we require people’s cooperation. Do not hoard small denomination currency. Let it be in circulation so that economic activity is not affected. All I request is that people should switch to online transactions in a big way,” he said.
The Chief Minister opined that the newly-introduced Rs 2,000 currency note had few takers and ATMs were not the appropriate way to solve this crisis.
“Any number of ATMs will prove insufficient, as the smaller denomination notes will be withdrawn in a very short time and still the requirement of the people cannot be met with smaller denominations.
The only option is to go for online transactions and mobile transactions,” he stressed.
He added that they had already initiated several measures for having more POS machines at RTC bus-stations, Mee Seva centres, rythu bazaars, provisional stores and, hotels.
Admitting that there were apprehensions among the people about the security of online and mobile financial transactions, he said synchronizing those accounts with Aadhaar cards, having biometric (fingerprinting and Iris scanning) facility in such transactions can make them more secure.
He emphasised the need for educating people and training them in the use of such transactions, so the need for physical currency transaction will be reduced.
The government, on its part, will be ensure that all financial transactions pertaining to welfare schemes like social pensions, NREGA go online, he added.
Yet again, appealing to the people to cooperate with the government as they did during the Hudhud Cyclone aftermath, Pushkaralu and drought in the State, he said the crisis can be overcome by
using technology.
He asked people not to get demoralised as the government was doing everything to bring back normalcy in the State, much before in the country. He said call centres at every level would be set up to assist people.
On the death of an old man in Kadapa district at a medical shop when his Rs 500 note was rejected, the Chief Minister replied he was aware of such incidents and felt very bad about it.
“I have instructed officials to ensure such incidents do not recur. There is no need to panic,” he said and directed the officials and bankers to have separate queues for senior citizens, the physically challenged, and women.
The Chief Minister also opined that if there was a need for tax exemptions at all levels, it should be done, as it could only increase tax payments.
In regard to DCCBs, he said the performance of central cooperative banks in the state was better than anywhere else in the country and the same was conveyed to the RBI.