The government’s policy reversals have destabilised the climate of the Indian economy and shaken consumer confidence in the banking system. These flip-flops and the whimsical manner in which the finance ministry and the Reserve Bank of India are dealing with demonetisation have ramifications.
Imposing weekly restrictions on deposits or seeking explanation for depositing Rs 5,000 or why a customer did not approach the bank before are ridiculous. These rules have increased red tape. It has bestowed too much power into the hands of a bank clerk, who has his personal interpretation of these diktats.
