RBI pumps in cash, taxmen conduct raids on hoarders

New Delhi: Even as the RBI has expedited the pumping of funds into some of the cash-starved states, taxmen have conducted 30-35 raids in Andhra Pradesh and election-bound Karnataka as part of their drive against cash hoarders.
As per sources, raids will continue for more days to check hoarding which is seen as the main reason for ATMs running dry in the several parts of the country.
Tax authorities have identified role of large contractors in Andhra Pradesh and Telangana for the problem.
Information so far gathered by Tax officials suggest that large contractors have been issuing cheques to their sub-contractors who have withdrew money based on the payments they received for their projects.
According to a study, demonetisation has a least effect on large people’s habit on the use of cash. Morgan Stanly, a private investment bank, says that only 8 percent of total household transactions are done digitally in India.