NEW DELHI: Even while the members of Parliament hailing from Opposition parties continue to demand deposits of old high denomination currencies in the co-operative banks, the government remains firm not to heed to the clamour on the grounds that they are conduit for black money, besides maintaining that India will migrate to mobile based transactions from cash economy in a five years time. Sources also stated that the Reserve Bank of India (RBI) would soon issue notification for the marriage cards based withdrawal under which an SDM would stamp the name of the bank branch from where the facility could be availed.
In an indication that the government is keeping a hawk’s eye on the deposits in the co-operative banks, top sources revealed that high-value transactions have taken places in West Bengal and elsewhere. “On a single day just after the announcement of demonetization by the Prime Minister Narendra Modi, the co-operative banks in the Raiganj district of West Bengal reported deposits of Rs 68 crores. In contrast, all the bank branches of the State Bank of India reported deposits of just Rs 26 crores,” a top source revealed.
Sources in the government stated that the Opposition MPs have strongly been arguing with the ministers in the Central Hall of the parliament to allow deposits of the phased out high denomination currencies in the co-operative banks. Even the NDA ally Shiromani Akali Dal (SAD) has sought inclusion of the co-operative banks in the process of the rollout of demonetization. “The co-operative banks, which operate under the rules set by the state government, will become the conduit for black money to become white. This will not be allowed,” added the top source.
Within the Modi government, there appears a consensus that the inconveniences would last a few weeks but would give a major leg up in allowing the cash economy to migrate to mobile banking. “There are almost 40 crore smartphones in the use within the country. This was not believable 15 years ago but is now a reality. The demonetization is an opportunity for the economy and the people to embrace the mobile banking as the mode of transactions,” added the top source.
With the use of the smartphones on the rise in the rural areas following the rollout of the Pradhan Mantri Fasal Bima Yojna (PMFBY) under which the status of crop photographs are shared, the government is pinning hope that people would embrace mobile banking. “In the process of demonetization the people who are still not part of the banking system will open their accounts, which will help the informal economy come into the formal channels gradually,” said the source.
The source also stated that the RBI in a bid to stop the misuse of the facility of withdrawal on the basis of a marriage cards would be made full-proof. “The SDMs will stamp on the marriage card details of the bank and its branch from where the money could be withdrawn. The RBI will soon issue the notification,” the source added.