Cash crisis: Traders' body seek PM Modi's, RBI intervention

Weekly withdrawal limit of Rs 50,000 from current account and monthly limit of Rs 2 lakh is causing them problems

Ruing that their business has virtually come to a standstill post currency ban, traders in Gujarat have sought intervention of the Centre, the state and RBI to tide over the liquidity shortage.

The Gujarat chapter of the Confederation of All India Traders (CAIT) has said Prime Minister Narendra Modi, Gujarat Chief Minister Vijay Rupani and RBI should intervene more to resolve the issue of cash crunch.

"Traders have been forced to shut down their business following the government's surprise move to demonetise high-value currency notes, which has resulted in a shortage of valid bank bills," Pramod Bhagat, President of Gujarat chapter of CAIT, told PTI.

Situation is becoming "grim day by day" as traders are facing liquidity squeeze due to restrictions on withdrawals of cash from their bank accounts.

"Also, traders want limits on withdrawal from the current account to be lifted. The shortage of Rs 50 and Rs 100 notes is also hurting their business," he said.

"We cannot do much business with a weekly withdrawal limit of Rs 50,000 from current account and monthly limit of Rs 2 lakh. This amount is not enough to meet our basic monthly expenses like rent, wages and daily incidental expenses."

Nilesh Shukla, President of the Vadodara Chamber of Commerce and Industries (VCCI), claimed that lack of required cash is affecting over 18,000 small-scale industrial units in the city, Gujarat's commercial hub.

Naranbhai Rathwa, Congress leader and a former Union minister said Agricultural Produce Market Committee-run yards in Chhotaudepur district had to remain mostly closed after the scrapping of Rs 500 and Rs 1,000 notes, which has led to shortage of low-denomination currencies.