Two leading bank unions criticised the government on Monday over demonetisation of Rs 500 and Rs 1,000 notes, saying the move has led to “financial chaos” across the country. In a letter to Indian Banks’ Association (IBA), All India Bank Officers’ Association (AIBOA) and All India Bank Employees Association (AIBEA) said the decision to withdraw the high-value notes was taken without proper planning or preparation. There is a huge shortage of Rs 100 notes which are now in great demand for routine needs, while most customers are not willing to accept the new Rs 2,000 bill, they said. “One cannot understand the reason behind banning the existing Rs 500 notes and not providing new supply of Rs 500 notes in time,” it added. Nagarajan and Venkatachalam requested the IBA to ensure the RBI supplies adequate cash in denominations of Rs 100 and new Rs 500 notes to ease pressure on banks and provide relief to customers.

Source: Hindustan Times November 14, 2016 13:34 UTC