• Only Rs 2000 notes for dispensation in most ATMs
• Nagaland State Govt requisition RBI for additional Rs 400 crore
• Panic hoarding of lower denomination notes reported
Morung Express News
Dimapur | November 21
Banks in Nagaland are already facing severe crisis with shortage of Rs 100 denomination notes.
Lower denomination notes is in big demand since it is difficult to obtain change for the new Rs 2000 notes, and the situation faced by public and traders alike with the introduction of the new notes at this juncture is that of aggravation rather than respite.
On Monday, almost all of the ATMs of private and public banking sector had only Rs 2000 notes for dispensation. Only in ATMs of State Bank of India (SBI), the public could withdraw lower denomination notes, however with a mix bag, which included the Rs 2000 notes.
“Yes, we do have shortage of lower denomination notes, particularly Rs 100 notes, like other states. It is running out and will not last long,” Assistant Manager of SBI Regional Office, Dimapur Thangboi Lunkim informed The Morung Express, when contacted.
According to Lunkim, even the Reserve Bank of India (RBI) does not have much stock of the Rs 100 notes, while the new Rs 500 notes is yet to be introduced in the North East Region.
While the RBI said it had launched the new high security Rs 500 notes on November 13, many of the States including northeast are yet to receive any of its stock. It is expected that the introduction of the Rs 500 denomination can ease pressure on cash position of banks and improve liquidity in the market.
Besides, in order to meet any exigencies in case of currency crisis, the Nagaland Government with consultation with the SBI have intimated the RBI for Rs 400 crore for Nagaland State. The requisition made has been made with request for lower denomination notes and the new Rs 500 notes.
Lunkim also insisted that there is no shortage of ready money in the State as speculated and said the situation was “quite okay.” The shortage is only with the stock of lower denominations, he added.
Apart from a handful of shops, like bakeries, departmental stores or the “illicit liquor shops,” many of the business establishments are reluctant to accept the Rs 2000 denomination, because they have shortage of lower denomination notes. In shops accepting the new high value denomination, it is with condition that the customer accepts the old devalued Rs 500 and Rs 1000 notes as part of the change.
There are also reports of hoarding of Rs 100 notes by people as panic spread over its shortage, which in turn has created more hassles for the banking institution leading to fast disappearance of these notes from the ATMs and the banks.
Large amounts still parked in bank accounts of tribals
Can lead to complications on the tax status of the tribals, cautions Finance Dept
DIMAPUR, NOVEMBER 21 (MExN): In spite of the advisory issued by the Finance Department, Government of Nagaland, reports are still being received from various agencies informing of deposit of large amounts into the bank accounts of tribals, a DIPR report quoting a press communiqué from the department informed.
The Government of Nagaland on November 18, 2016 had cautioned all tribal, who are exempt from paying Income Tax not to allow non-tribal to park their money in their accounts, saying this is illegal and amounts to conversion of black money into white.
The Finance Department has reiterated that any exemption from payment of Income Tax does not imply that any amount of money can be deposited into the accounts of tribals. “Such persons are liable to disclose their sources of income, and if the amount deposited are found to be in excess of their known sources of income, they shall be treated as illegal transactions with the attempt to cover up black money,” it stated, adding that this can further lead to complications on the tax status of the tribals. It has therefore cautioned all tribals in the State of Nagaland not to allow parking of money belonging to non-tribals and other business enterprises in their bank accounts, as they shall be doing so at the risk of facing penalties.
