CU Condemns Unplanned Demonetisation of Currency; Urges PM to Take Action Against Officials Responsible for Poor Execution and implementation

Ludhiana, December 3, 2016: Sh.Avtar Singh, President, Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana today said that multiple problems are being faced by Trade and Industry due to unplanned demonetisation of currency and execution as under:
Ø The workers in the factories do not have their account in banks and previously they were getting the cash payment from the employer. Now it has become very difficult to pay wages to the workers as the production also reduced due to their non-availability in the units. The panic has been created amongst the workers as well as the employers.
Ø The income tax department of the country has created panic by doing the survey and raiding the industrial units which has resulted into defaming the BJP government as well as the demonetisation of currency. It is requested to advice the income tax department to unnecessarily raids of the industrial units.
Ø It has brought to the notice of the Chamber that in some Bank branches are adjusting old currency with new currency in illegal way.
Ø The scheme has put a dent on production and sales as prices of raw material has increased due to less availability of cash and low stock.
Ø This has caused acute shortage of factory workers as they are busy getting cash exchanged at Banks and Post Offices.
Ø Currency crunch has severely curtailed the purchasing capacity, making timely payment to workers which are causing fallout in production and losses. Impact of such a churn in industrial and trade sector would have a cascading effect on other sectors of economy.
Ø Banks are receiving less cash from Reserve Bank of India against requisition for meeting out day by day requirements.
Ø Recalibration of more than 2.20 lacks ATMs is the great need of the hour to meet out shortage of cash.
Sh.Avtar Singh President CICU has appealed, requested and urged Sh. Narendra Modi, Prime Minister for providing immediate relief to trade and industry by relaxing cap on cash withdrawals, ensuring faster supply of requisite currency to Banks, carrying out recalibration of ATMs on war footing, providing micro ATMs at industrial Chambers for withdrawal of cash and introducing other innovative solutions to mitigate problems being faced by Trade and Industrial sectors. They have further requested Prime Minister for taking action against officials responsible for poor execution and implementation of this scheme.