Demonetisation: Andhra Pradesh just found a way to tackle cash crunch. Here’s how

Prime Minister Narendra Modi’s demonetisation scheme has made the country undergo a cash crunch. The scheme might have hit the black money hoarders hard, but common man has been hit harder. But, to deal with the cash crunch, people in Eluru, Andhra Pradesh have come with an innovative idea to overcome the shortage of smaller denominations.

Under the idea, tokens worth Rs.50 and Rs 100 are made available in 'Raitu Bazaars' (farmer markets) for the convenience of the people. This will make the transaction between the seller and buyer hassle free, easy and effective.

How it works:

Anybody can buy tokens worth Rs 500 and they will be valid for three days. If the beneficiary is unable to use the tokens within three days, they can return the unused tokens to Estate Officers of the concerned 'Raitu Bazaars', who will in turn deposit the balance amount in the individual bank accounts of the beneficiaries.

How it started:

The system at first initiated in the West Godavari district and has now extended to other districts. According to officials, the system is working good and yielding good results.

The State Bank of India (SBI) has also come to offer its services to the people by opening counters in 'Raitu Bazaars' to provide change upto Rs.200/- through ATM cards. Several other banks have already installed e-Pass machines in Vijayawada to provide change for Rs.500/- free of charges.

Chandra Babu Naidu, Chief Minister of AP, urged the centre to give Rs 10,000 crore of smaller denominations to the state to overcome the problem of shortage of change.

He also said the State will be happy, if the Centre agrees for 100 per cent subsidy.

He also suggested to the centre to exempt charges to the people who will make on-line transactions.