After widespread chaos, PMO seeks report on demonetisation situation | india-news | Hindustan Times
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After widespread chaos, PMO seeks report on demonetisation situation

The Prime Minister’s Office (PMO) has sought reports on the demonetisation situation from banks and post office, amid reports of people having to wait long hours to withdraw or deposit cash.

black money crackdown Updated: Nov 13, 2016 18:00 IST
Mahua Venkatesh
People wait in queues to exchange scrapped currency at a Bank of Baroda branch at Pahar Ganj in New Delhi.
People wait in queues to exchange scrapped currency at a Bank of Baroda branch at Pahar Ganj in New Delhi.(Arvind Yadav/HT Photo)

The Prime Minister’s Office (PMO) has sought reports on the demonetisation situation from banks and post office, amid reports of people having to wait long hours to withdraw or deposit cash.

Sources said a high-level meeting chaired by Prime Minister Narendra Modi on the matter was likely to be held soon.

“The Prime Minister is back in the country and he will be calling for a stock taking meeting with bank chiefs and other stakeholders... he has already sought a report (on the demonetisation exercise),” a source who refused to be identified told Hindustan Times.

Read | Give me 50 days over scrapped notes, punish me if problems persist: Modi

Modi, who was out of the country on a three-day visit to Japan, returned on Saturday.

Modi, on November 8, in a surprise move announced withdrawal of all currency notes of Rs 500 and Rs 1,000. While announcing the demonetisation exercise, he said ATMs and bank branches will be able to dispense the new currency notes by November 11. However, the situation is far from normal as people have to wait for hours to withdraw or deposit cash and most ATMs have run dry.

The Reserve Bank of India on Saturday issued a statement that there was enough money with the central bank, in an attempt to allay fears.

Read | No need to rush: 10 things finance minister Jaitley said about demonetisation

On Saturday, finance minister Arun Jaitley said more than two lakh ATMs in the country will have to be “recalibrated” to be able to accept the new banknotes that come with new features and designs. He said it may take two to three weeks for the situation to normalise.

Before the demonetisation exercise, Rs 17 lakh crore of currency was in circulation in the country, of which over 86% comprised high-denomination notes of Rs 500 and Rs 1,000.