'PM's demonetisation move to hit middle class, small traders'

Hitting out at Prime Minister Narendra Modi's "absurd" announcement of scrapping Rs 1,000 and Rs 500 notes with effect from midnight, Congress and CPI(M) today said the decision would have a drastic impact on the financial health of middle class and small traders.
"We are always in support of unearthing black money. But after 2.5 years of silence on the issue, the Centre all of a sudden decided to scarp the Rs 500 and Rs 1,000 notes. This is nothing but absurd. This decision will have a drastic impact on small traders and the middle class," CPI(M) politburo member Mohammed Salim told PTI.

Former PCC president and Congress MP Pradip Bhattacharya too termed the decision as "arbitrary and anti-poor".
"Tomorrow when people of India will wake up, they will be unable to use the Rs 500 and Rs 1,000 notes. What will they do then? This is nothing but an arbitrary decision which will impact small traders, middle class and poor people of the country. Many people of our country still do not have access to banks. What will they do?," he asked.
Most of the wage payment in leather factories and
tanneries are in cash and restriction in cash withdrawal has only made the situation worse.

Members of the Calcutta Leather Complex Tanners Association claimed that the industry consists of MSMEs who have some 400 factories, and most of them are facing severe cash crunch to clear wages.

The tea industry also faced wage related issues resulting in lower production.
There has been no estimates so far as to what could be the impact of demonetisation on the state's GDP. To cope with the situation, everyone is trying to find ways and means to protect their business, it seems.
Currae Eye Care Hospital has started cashless cataract surgery programme which offers EMI facility with two preferred financiers in the wake of demonetisation.

Meanwhile, on supply of currency notes, SBI Bengal circle CGM PP Sengupta said that on an average, 70 per cent of their ATMs had cash at least once in a day.
"Whatever Rs 500 notes we are receiving are pumped into ATMs to ease the situation. But, there are logistics issues and we are supplying cash in accordance to supply from RBI," he said.
Long queues have been missing in ATMs which are dispensing only Rs 2,000 currency notes. The scene is just the opposite in front of ATMs churning out Rs 100 and Rs 500 notes, making them go dry very soon.