The Central government had sent a team of 81 bureaucrats to examine the impact of demonetisation on the ground. The team has come back with a grim report – note ban has affected livelihood in rural areas, especially in the farming sector and the sowing season, reported The Economic Times.
The bureaucrats were divided into teams of three, each led by an Additional Secretary, and dispatched on 18 November. The main problem, according to the report, is not the lack of cash in the market, but the shortage of lower denomination notes.
India’s banking system has seized up under the strain of Prime Minister Modi’s decision to phase out high denomination banknotes with immediate effect. Its effects are most visible in rural India. The eventual benefits of demonetisation, economists say, are uncertain; but the costs are clear and visible.
Also Read: Currency Ban Is Tearing Rural Banks Apart
Source: The Economic Times
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