Central observer in Gangtok to review demonetisation process

Central Government Observer A K Yadav is on a three-day visit here to review the financial situation in Sikkim after the demonetisation of Rs 1,000 and Rs 500 currency notes.
During the visit, he will assess the currency availability across the state in the bank branches, ATMs and post offices, besides calibration of ATM, a press note issued by the state government said.
Yadav, Joint Secretary in the Ministry of Statistics and Programme Implementation, held a series of meetings with the Chief Secretary A K Shrivastava, Principal Secretary, Finance, M G Kiran, Chamber of Commerce, State Bank of Sikkim, Trade & Industries and Director, Postal Services here yesterday.

In the meeting with the Chief Secretary, various issues were discussed as regard law and order situation, flow of currency, non-functioning ofATMs in the state and non-availability of currency notes especially in rural areas.
Managing director of the State Bank of Sikkim brought to Yadav's notice that post demonetisation, chest banks have stopped providing currency notes to them due to which they are facing difficulties and unable to serve the 40 bank branches all over the state.
The Managing Director also said that the State Bank of Sikkim, in operation since 1968, was established under the Royal Proclamation of Chogyal, which is an old law of Sikkim, which is protected by Article 371(F) of the Constitution.

In the meeting with representatives of the Chamber of Commerce, Trade &IndustriesYadav was apprised about the various problems in the post demonetisation scenario.

They suggested deployment of mobile vans by State Bank of India and Central Bank for exchange of old currency notes of Rs 1,000 and Rs 500 in the rural areas.
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The representatives of the Chamber of Commerce also suggested enhancing the existing limit for cash deposit in the banks from Rs 2.50 lakh to Rs 10 lakh especially in Sikkim which is landlocked and where villagers usually keep substantial amount of cash with them to meet their emergency requirements.

Later in the day Yadav held a meeting with representatives of Bankers and Director, Postal services, where he advised them to make available adequate flow of money in Sikkim for smooth functioning of economy and to ensure that the public is not inconvenienced during the transition period.
Representatives of Bankers also brought to his notice that the flow of currency was poor and he was requested to take up the matter immediately for making available currency to the chest banks.
Yadav will be holding separate meeting with farmers today to have on the spot assessment of the difficulty, if any so that it could be brought to the notice of the Central Government accordingly.

He will also visit rural areas to make an on the spot assessment of the grass root levels.