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Solve currency problem before January: Naidu to bankers

by December 13, 2016 General

VIJAYAWADA: Chief Minister N. Chandrababu Naidu has asked the bankers to solve the currency problem in next 17 days.

Addressing a teleconference on demonetisation here on Tuesday, Mr. Naidu stressed the need to ease the situation before January. Petty traders can open current accounts to tide over the currency problem. Bankers should guide them to open current accounts and also switch over to cashless transactions. Small traders were facing procedural issues in opening current accounts, he pointed out.

It was necessary to prepare people to adopt cashless transactions, and for which it was necessary to put in place the necessary infrastructure. The banks would have to bring in unified procedures to promote mobile transactions. A single M-PIN for mobile transactions would go a long way. At present, banks were issuing individual M-PIN leading to confusion among the users, he felt.

The amount deposited in accounts of DWCRA group women and pensioners would be put to use immediately. The cash available to these sections of society increases currency circulation. The banks would have to take cognisance of the fact and give priority to the DWCRA groups and pensioners.

Mr. Naidu said the State government would launch cashless transactions at all fair price shops from January. Officials and fair price shop owners would have to ensure that Christmas and Sankranti gifts reached the ration cardholders properly. It was an excellent opportunity for the ration shop dealers to work as business correspondents also, he said.

District Collectors, SLBC convener Ranganath, RBI official Subbaiah and others were present.

Singapore model

At another review meeting on revenue, Mr. Naidu asked the officials to follow the procedures of Singapore government to improve revenue. The Singapore government has been increasing its revenue by investing in foreign countries in addition to available economic resources. Every rupee should be counted in government expenditure, he said.

Special Chief Secretary (Finance) Ajeya Kallam said they were carrying out financial transactions online. However, they are facing some problems due to lack of coordination between Treasuries, banks and RBI. Revenue came down by Rs. 200 crore in November compared to October, he said.

Mr. Kallam said AP was likely to receive Rs 1,000 crore from Nabard towards Polavaram project.