Modi Deploys Teams to Ascertain Losses of States

The Central government is sending teams to all the states to ascertain the losses incurred by the states due to the demonetization. 32 Teams were formed with about 70 Senior Officials of Department of Personnel & Training for this purpose. The teams for big states will have three officials and small states will have two officials.

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They will tour all the states and sit with the state government officials to ascertain the losses incurred after that radical decision of Demonetization on November 8th. Center may use the data to ascertain the losses of the state government and may cover it up with a part of the money saved through Demonetization.

RBI in a statement the other day announced that Public deposited Rs 5.12 lakh crore in Banks and exchanged Old Currency Notes worth Rs 33,000 crore since November 10. The gap between the deposits and the exchange indicates the cash crunch which brought the buying capacity of the people to all time low which impacted businesses and thereby Tax collections to the state governments.