‘Move getting support, but execution patchy’

NEW DELHI: A special team of bureaucrats sent to states for an on-the-spot assessment of the demonetisation drive has informed the government that though there was massive support from the people, the implementation was patchy.

Cash crunch in banks and ATMS, shortage of smaller denomination and ₹500 notes, ATMS not recalibrated and post office network not optimally used were some of the key problems that the central team flagged in its report submitted to the finance ministry last week.

“In both urban and rural areas, we found the situation will improve if the cash circulation is increased and ATMS are replenished at regular interval,” said a bureaucrat who visited a northern state.

Barring some areas in states such as West Bengal and Bihar, where farmers expressed discontent, the team found that people by and large supported the Prime Minister’s decision with the hope that it would weed out black money and rein in corruption.

However, it was also noted that in the short term some sectors such as retail and construction will be adversely hit. “In some of the northern and western states, for instance, the construction sector has witnessed a revenue dip by up to 30%,” said another bureaucrat.

The team has recommended large-scale awareness campaigns to sensitise people about cashless transactions and its benefits.