CICU holds meeting with Joint Secretary on demonetization of currency

Ludhiana, November 22, 2016: Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana held a meeting with Daleep Kumar, Joint Secretary, Ministry of Home Affairs, Government of India who visited Ludhiana to take feedback about demonetization of currency.
CICU brought to his notice that poor execution and implementation of demonetization of currency has caused serious hardships to Micro, Small & Medium industry across the country due to following main reasons:
• The industry is badly hit and facing serious losses as this 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.
• Banks are receiving less cash from Reserve Bank of India against requisition for meeting out day to day requirements.
• The industry is facing acute shortage of factory workers as they are busy getting cash exchanged at Banks and Post Offices.
• Delayed recalibration of more than 2.20 lacks ATMs is a causing concern leading to acute shortage of availability of cash.
• Supply of less cash from Reserve Bank of India against requisition has further aggregative already tensed situation of cash strapped Banks.
• Impact of such a churn in industrial sector would have a cascading effect on other sectors of economy.
CICU leaders suggested to resolve the serious issues and refection of crisis by introducing immediate relief measures as under:
• Relaxing cap on cash withdrawals for industry.
• Ensuring faster supply of requisite currency to Banks.
• Carrying out recalibration of ATMs on war footing.
• Providing Micro ATMs at Industrial Chambers/Associations for withdrawal of cash.
• Introducing other innovative solutions to mitigate problems being faced by Industrial sector.
It was further requested to take action against officials who did no homework and are responsible for poor execution and implementation of this scheme.
“The speedy consideration of our aforesaid suggestions will alleviate the hardships, cash crunch and losses being suffered by the Micro, Small & Medium Enterprises”, said the CICU leaders.
The meeting was attended by Avtar Singh, Upkar Singh Ahuja, O.P bassi, Phuman Singh, Anand Kumar, Yashpal Gosain, Kanish Kaura, Sanjay Dhiman, Panjak Sharma, Honey Sethi, Rajnish Ahuja and others.