EEPC seeks resolution of operational issues related to demonetisation
EEPC India said in a release that while Prime Minister Narendra Modi's initiative to fight black money and corruption through demonetisation is a welcome move, certain segments have been facing difficulties.
In a presentation to the Commerce and Industry Minister, Nirmala Sitharaman, the apex body of engineering exporters said that certain segments such as farm equipment , steel rolling have been affected by the demonetisation.
To alleviate the difficulties of the engineering industries, the limits for withdrawal from the current account at Rs 50,000 and OCC (Open Cash Credit) at Rs 25,000 may be increased, said EEPC India.
"This is inadequate and affecting most of the small and medium scale units. For instance, some companies have a weekly system of wages where workers seek payment in cash. Even though they have bank accounts, they are unwilling to accept direct payment to their banks largely because if the amount exceeds Rs.50,000, it would lead them to forfeit their subsidy benefits for BPL account," said Ravi Sehgal, Senior Vice Chairman of EEPC India.
He said while the objective of the scheme is to curb generation of black money, "It is quite well known that businesses have to incur transaction costs. Steps should also be taken to lower transaction costs for long term benefits. Besides, with the transport sector being affected by the demonetisation, the movement of export cargo has been," Sehgal said.
Image: EEPC India website (representational purpose only)
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
