Take effective steps to mitigate hardship of public: CM to FM

As long queues were seen at bank branches and ATMs across Karnataka to withdraw money and exchange demonetised Rs 1000 and Rs 500 notes, Chief Minister Siddaramaiah today wrote to Finance Minister Arun Jaitley, requesting him to take effective steps to mitigate hardships faced by the public.
The Chief Minister also made some suggestions to the Union government, based on the ground inputs he has received from the officials and banks.
"There has been much inconvenience to the common public, both for exchanging the old notes and also for withdrawing cash from banks and ATMs. This is primarily on account of the fact that the banking system does not appear to have been geared up for this mammoth task given to them," he said.

Suggesting that sufficient and practical measures could have been put in place in advance, he said "I hope that the Central Government and Reserve Bank of India will take immediate and effective steps to mitigate these hardships taking into account the suggestions."
Siddaramaiah today took stock of the prevailing situation in the state in the wake of demonetisation by meeting senior finance department and Bank officials here.
Stating that in his view the new Rs 500 notes should have been introduced first before Rs 2,000 notes, he requested Jaitley to introduce new series of Rs 500 notes immediately to give relief to the common man.

He also suggested that the time limit for use of old currency for the exempted categories of payments be extended till December 30 as this period is anyway available for them for the exchange of old currency.

Pointing out that medical services are in a nature of an emergency service, irrespective of them being in the government or private sector,the Chief Minister said there were instances of patients being denied treatment in private hospitals due to lack of availability of cash with them.
"I suggest that private hospitals, diagnostic labs and blood banks may also be included in the exempted list. If that is not found feasible, then Banks may be directed to set up a priority counter designated for payment to these institutions using old currency based on the authentication based on admission/discharge documents & bills," he added.

Siddaramaiah's other suggestions to the Finance Minister included increase the cash supply to the cooperative banking sector as per their requirement, enhanced withdrawal limits for registered traders and commission agents of the markets to enable them to pay small and marginal farmers in time.