Bandhan Bank CEO lauds demonetisation

According to him, everyday the bank was collecting Rs 150 crore and could not disburse the amount because "there was no cash".

Kolkata, Nov 16 Lauding the demonetisation of Rs 500 and Rs 1000 currency notes, Bandhan Bank MD & CEO Chandra Shekhar Ghosh today said that the implementation of the move should have been done in a better manner to offset the currency crisis in the country.

"This is a tough step taken by the government. And the policy is very good to counter fake currency and black money. But the implementation of the supply must be strengthened so that people can get the money they need," Ghosh said.

The Bandhan Bank official was speaking at a panel discussion on the 'Withdrawal of Rs 500 / Rs 1000 Notes: Understanding Implications and Managing the Impact' organised by the Indian Chamber of Commerce today. According to him, everyday the bank was collecting Rs 150 crore and could not disburse the amount because "there was no cash".

"There is a big gap between the supply and demand (of currencies)... If I talk about my micro credit operations in the country everyday we are collecting Rs 150 crore but the same amount is like to be disbursed... So I decided to stop the disbursement because cash is not there," Ghosh said stressing that the cash crunch was not felt in every states but only a few.

Incidentally, the Bank has suspended disbursals since November 9 and the suspension will be in force till November 19.

Ghosh further said, "It's still not that destructive and you can run the operations for a week or another 15 days... But if it (the current crisis) continues for a long time this might lead to a disaster."

PTI