Retail trade comes to grinding halt post demonetization: Federation of Retail Trade...

Retail trade comes to grinding halt post demonetization: Federation of Retail Trade Welfare Association

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Expressing strong disagreement with the ways in which the Government of India has addressed the evil of corruption in the country, a retail traders’ body said that the Union government did not do proper homework before announcing the decision.

RBI urges retailers to deposit money, relaxes withdrawal norms
RBI has said they would be allowed to withdraw the deposited sum in Rs 2,000 and Rs 500 notes, irrespective of the existing withdrawal limits

According to (FRTWA) chief, Viren Shah, “The Union government seems to have not done its home work properly before announcing the decision to demonetise Rs 500 and Rs 1,000 currency notes.”

Read: Hawkers’ sales down by 70-80 pc due to demonetization

As per a PTI report: After meeting Shiv Sena president Uddhav Thackeray in Mumbai, Shah demanded that the government scrap Value Added Tax (VAT) andIncome Tax (IT).
He claimed that the business of retail traders has come to a grinding halt because of the decision to demonetise Rs 1,000 and Rs 500 notes.

“In the months of November-December the business of the traders is usually in full swing. But because of this decision the traders business has completely collapsed,” Shah said.

Read: Demonetization a Masterstroke, give it time to play out: CII

The traders body had written to Prime Minister Narendra Modi about the problems the traders were facing.

Meanwhile, FRTWA office bearer Biren Limbachiya sarcastically said that earlier there was the talk of bringing back the black money from abroad, but now people in the country are facing hardships.

“The trading community had helped Prime Minister Narendra Modi come to power, but now we (traders) are being harassed,” he was quoted by PTI as saying.

As per the data available, there are about 1,579 cooperative banks all over the country having 10,000 branches and close to 3,000 operational Automatic Teller Machines (ATMs) across the nation, PTI said in its report.

There are about 370 District Central Cooperative Banks (DCCBs) and over 93,000 Primary Agricultural Credit Societies (PACS) in the country.

According to the RBI data, 370 DCCBs have held deposits of Rs 2,36,890 crore as of 2014 while PACS have had Rs 81,900 crore deposits.

Modi Government had announced the decision to demonetise Rs 1,000 and Rs 500 currency notes on November 8.