Dec. 20: Chandrababu Naidu, a key ally of the BJP and an advocate of demonetisation of higher currency notes since 2013, today said there was no solution in sight to the cash crisis even after 40 days.
"I am spending at least two hours daily to resolve this issue and sometimes I am spending the whole day breaking my head but still no solution appears in sight," said Naidu, who heads a sub-committee of chief ministers set up to evolve a roadmap for transition to a digital economy.
The Andhra Pradesh chief minister had been among the first to congratulate Narendra Modi for the demonetisation decision. His party, the Telugu Desam, had even claimed credit for the move by pointing out that Naidu had been pushing for it for long.
But today, Naidu said: "Demonetisation is not what we had wished for but it is here.... More than 40 days have passed but the problems are still persisting. Economic activity has dwindled. While we are trying to the maximum level to go digital, there is a lack of necessary infrastructure to do so."
The Andhra Pradesh chief minister was addressing a Telugu Desam workshop at Vijayawada.
Exactly a month ago, when the cash crunch had shown no signs of abating after 12 days, Naidu had appeared to lose his patience and said this was the longest he had seen a political problem drag.
Today he expressed unhappiness with the Reserve Bank of India and the banks for not being able to "manage the crisis". "No change is available for the Rs 2,000 note," he said, adding that the RBI was sending money in small tranches.
"The decision taken by the Government of India, while it has affected the public, has also impacted our revenues," Naidu said.
'Breach of trust'
The Congress today lashed out at the government's latest announcement, putting curbs on deposit of old notes, saying it amounted to a breach of people's trust and had dented the credibility of both the government and the RBI.
Yesterday, the RBI said deposits of demonetised notes valued at over Rs 5,000 would be allowed just once in a bank account between now and December 30. The RBI also said two bank officials would grill customers to determine whether they had valid reasons for "not depositing the notes earlier".
Hours later, finance minister Arun Jaitley said no questions would be asked if bank customers made deposits of "any amount" once, but would need to worry if they went again and again.
In the past, Jaitley had said people did not need to rush to exchange the demonetised notes because they had time till December 30. If they waited, it would also ease the pressure on the banks, he had said.
Rahul tweeted today: "The RBI is changing rules like the Prime Minister changes his clothes."
In a series of tweets, former finance minister P. Chidambaram said the government was resorting to desperate measures and in the process, taking steps contrary to the Prime Minister's promises during the demonetisation announcement on November 8 and finance minister Jaitley's assurances.
"The RBI makes new rule on deposit and the finance minister contradicts. Who should the citizens believe? Neither has credibility," the Congress leader tweeted.
