Indian Banknote Crisis
India’s logistics industry has been left confused and concerned by Prime Minister Narendra Modi’s unexpected decision to ban the issue of 500 & 1,000-rupee banknotes. These denominations currently represent around £6 and £12 respectively.
According to the All India Motor Transport Congress, which represents 9.3m truckers, 70% of its members’ vehicles have been forced off the road as operators struggle to pay truck drivers their wages and find the petty cash needed to cover fuel and other costs.
The cash-crunch began after Modi’s shock 8 November announcement that India’s two largest denomination banknotes would be scrapped in a bid to counter corruption, money laundering and the “black economy”.
Three weeks later, businesses and individuals are reportedly struggling to exchange old bills for new, and have until 30 December before the old notes become obsolete. Withdrawal limits have reportedly been imposed at banks and ATMs as the government struggles to issue enough new bills.
“The logistics industry in India can be dependant on daily cash, as most of the drivers don’t have credit or debit cards, nor do villages through which they traverse have banking facilities,” says a senior industry spokesman.
He added: “The industry depends on daily bank withdrawals and handing over cash to the drivers for en-route expenses.
<< PLEASE SHARE THIS STORY ON SOCIAL MEDIA EASILY BY CLICKING THE ICONS TO THE LEFT.
This week Uniserve Group's Adam Entwistle will be celebrating a major milestone after serving the company impeccably for the past 15 years. Adam joined our team as an Import Operator on 23rd June 2003, and has deservedly worked his way up to become Senior Airfreight...
Uniserve Group will be holding a family fun day as a thank you to all of our long-serving team members on 1st July 2018. The event, which will celebrate the achievements of 101 of our loyal employees, is being held for everyone who has completed 10 years of service or...
A new operating system at Felixstowe is reportedly responsible for current delays at the port, as drivers face queues to collect and deliver containers. Turnaround times on the quay have been ranging from 15 minutes up to 12 hours, despite claims on local radio of one...