In real terms, the demonetisation step was not able to meet the expected outcome and hence, in order to save their neck, the politicians diverted the talks towards Cash-Less or in their own terms Less-Cash economy. Actually, Cash-less or Less-Cash are one and the same thing the ultimate motive of which is to phase-out cash from any economy. However, considering our current state of the economy which is majorly cash-dependent, the politicians has to refer it as Less-Cash economy, so that it sounds soothing to the ears of a common man and does not result in resistance or chaos in the market.
Indeed there is no harm in moving towards the Cash-Less economy and it has more of positive sides then the negative sides. But herewith, what went wrong is once again “the timing of this step taken”. The common man was already hit hard by the demonetisation monster, wherein the unavailability of cash mercilessly broke the backbone of the common man. On top of this, the ongoing steps taken by the Reserve Bank of India (RBI), as well as, Banks with regard to the Cash-Less economy are not helping in any way; rather it is aggravating the sufferings of the overburdened common man.
In order to meet the political ambition, the RBI and Banks started working towards the Cash-Less economy. Various guidelines are being issued on a timely basis restricting the number of cash transactions, imposing charges on withdrawal of cash exceeding a specified limit or number of transactions, as well as, imposing penalties on non-maintenance of minimum balance in the saving accounts, etcetera. However, RBI and the Banking Sector should have first examined the nerve of the country before opting for such measures, rather than working blindly on the orders of the politicians.
Anyone who attempts to sense the pulse of the common man will surely understand that post-demonetisation step taken by the Government of India (GOI) people are hesitant to keep their hard-earned money with the banks. There is surely a loss of trust among the common men and the two major reasons for this trust loss are –
- Firstly the “Trial and Error” methodology adopted by the GOI and RBI during those 50 days of demonetisation.
- Secondly, people were unable to withdraw “their own money” even within the prescribed limit set by the GOI and RBI.
This is the ground reality which can be vouched by anyone with a sane mind, but the prerequisite is that they need to step out from their air-conditioned offices and keep themselves grounded. In such a situation, the first and foremost thing that was required to be done “on priority” by the RBI, as well as, the banking sector as a whole, was to build the trust once again among the masses. However, they acted exactly in the opposite manner and started imposing a lot of restrictions on cash transactions. At the time when comfort was needed, what the common man got was a load of restrictions on their head.
Now, it’s for the Management and the Think Tank of RBI and Banks to evaluate and decide whether this was the right time to pitch the measures of the Cash-Less economy or not, especially in the light of sufferings of the common man. Mind it the availability of cash is not adequate still in the rural and interior areas. And here the country has to face restrictions on cash transactions. Wouldn’t it have been prudent if the Cash-Less economy was taken as an altogether new project “at an appropriate time” instead of a residual measure to save the neck of a few people? Do they have an answer to this question? I guess ‘No’.
Now, I would like to end this blog with the very hope that may the trust of common man always remain intact in our financial sector, especially the banks because they are one of the important pillars of any economy. I do wish that the respected and trusted organisations of our country always have the freedom to work with a free spirit, keeping in mind the larger interest of the society as a whole.
I wish that the Almighty give good sense to each one of us.
God bless you all!