Cash-strapped India struggles to cope

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Alongside long queues at banks and post-offices, Municipal Corporations in Gujarat cities suddenly received hefty amounts, mostly in Rs 500 and Rs 1000 denomination currency notes since Friday morning.

Ahmedabad Municipal Corporation (AMC) and Surat Municipal Corporation (SMC) collected tax worth Rs 17 crore and Rs 22 crore in just eight hours on Friday. Other major cities too received hefty amounts of tax in demonetise currency notes. 

“The people are coming on their own and paying up their taxes as we are accepting old Rs 500 and Rs 1000 denomination notes,” said Asmita Shiroya, Surat Mayor, while talking to The Pioneer.

The long queue outside offices of SMC and AMC started after both the local self-government bodies announced that they would keep the civic centres open to collect taxes from 11 am to 10 pm on Friday. The State Government too announced that citizens could pay their tax dues as VAT, stamp duty etc by Friday night.

“Old Rs 500 and Rs 1000 denomination notes would be accepted at State tax departments and the State Government requests people to use the opportunity,” said Gujarat’s Deputy Chief Minister Nitin Patel.

Meanwhile people in Gujarat, just like other parts of the country, too were seen standing in queues outside banks, post-offices and ATMs on the second day to exchange their old Rs 500 and Rs 1000 notes with newly-introduced currency.

With ATMs beginning to dispense cash after two days of shut down, many people seen hopping from one ATM to other by noon and as result of it many places cash exhausted. The police personnel were also seen maintaining security around banks and ATMs, with large crowds gathering to exchange notes.

The queues, however, were inconvenience to people who wanted to do regular banking. Reports of minor skirmishes between citizens and security guards outside banks in tribal dominated Panchmahal district in Central Gujarat also came.

Daily Pioneer
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