HOW IS YOUR SELECTED ARTICLE RELATED TO MONEY AND CAPITAL MARKETS, FINANCIAL MARKETS, FINANCIAL INSTRUMENTS, INTERNATIONAL MARKETS, AND ECONOMIC POLICY?
The article is related to money, capital markets, financial markets, financial instruments, international markets, and economic policy. It shows a situation in India, where people are not getting cash from the bank, as ATMs is empty. In the capital and financial markets, the shortage of the money is not a good sign. People are saving money in their homes and investing in real estate only. Thus, it seems the biggest problem for the economic growth as well. The article shows several reasons regarding the shortage of money in banks. The most prominent cause is the reduction in paper money production. People are not getting salaries, which also hit the economy. Therefore, this article is related to all these aspects.
WHAT ISSUE OR QUESTION IS YOUR SELECTED ARTICLE ADDRESSING?
In different banks of India, there is no cash for people. People are struggling to get money, which is creating frustration. The issue has been integrated with some political influences. Controversial economic and monetary policies of the government are one of the prominent causes of the cash shortage. The article streamlines the issue by elaborating some information, derived from different people. In several states, people are looking for ATMs to get money. Yes, there is a perception that government is seeking to support digital money transactions in the country. However, people want to stick to the paper money. When banks in the country do not provide the cash, the life disturbs. It is the primary issue that this article is addressing (Iyengar).
WHY SHOULD THIS ISSUE OR QUESTION BE OF INTEREST?
It is a prominent issue in an economy. Due to some reasons, people may experience the shortage of cash in banks. It is an interesting issue because it seems reasonable to navigate different strategies or considerations that the government can do to restore cash flow in banks. Apparently, there is a reason behind this issue and government, and key stakeholders are responsible for it. This issue is in the interest of people. People have to keep the money in a flow, which ensures the economic growth and sustainability. People cannot purchase, sell, and invest without cash. Interestingly, it puts pressure on the Indian government to fix this issue. Regarding the economy, workers in different organizations are also facing difficulties in getting wages or salaries. Thus, it is an issue of the common man (Kumar and Goel).
ARTICLE SUMMARY
For the second time in 18 months, India is struggling due to the shortage of cash. People think it is the fault of the government. Due to the unusual spurt in demand, money is not available in banks. Politically, the government is facing an immense criticism. Citizens are traveling to get cash from different banks or ATMs. Many people believe the prime minister of India wants to void the paper currency, which is creating this issue. Workers are not getting incomes, and opposition parties are using this issue to put pressure on the government. It may cause significant damage to the ruling party. People are losing trust in banks, as they are saving money at homes (Iyengar).
ASSESSMENT OF ISSUE
In Indian people want the life sustainability. Without money, it is not possible. The shortage of cash may cause the most miserable living standard in the country. People may contain the low buying power without money. People who get salaries from banks may stop working. It can hit the industrial sector as well, as the shortage of cash may reduce a level of transaction in the country. People are relying on home savings instead of banks, as these financial institutions are no more reliable. Urban areas of the country are facing this issue. Possibly, some protests may occur in different cities. Overall, it is a massive downturn in the Indian economy (Kumar and Goel).
THE BRIEF SUMMARY OF FINDINGS
This issue is going to hurt the Indian economy for a while. For Instance, if the government eliminates these issues, the demand for money may arise. The government may face a more significant problem now. Thus, the most important thing is to identify all those factors, which are causing this issue and steadily fix the issue. The government cannot meet the demand of people. However, this issue has to be removed. On the other hand, black market operators are taking benefits from this situation. The problem is promoting citizens to keep cash at homes. Bank administration is quite worried about bank operations. The public faith has faltered over the past year, and it is a big thing to worry.
CONCLUSION
In the end, it is to conclude that shortage cash can hurt people in an economy. It is a big barrier to economic growth. Government and banks must have to make different strategies to overcome this issue and facilitate people. The impact of this issue makes a financial condition worse. Interestingly, the problem is under control. However, the government should take some steps to fix this issue in different phases. The rise in the cash demand cannot be tackled quickly. People have to understand the problem and wait for the cash. The Indian government is also facing many crises. However, to eliminate this public issue, the strategic focus is required.
Work Cited
Iyengar, Rishi. “India’s ATMs are running out of cash … again.” CNN. CNN, 17 April 2018. Web. 24 April 2018. http://money.cnn.com/2018/04/17/news/economy/india-atm-cash-crunch/index.html.
Kumar, Hari and Vindu Goel. “Modi May Pay the Price as India’s A.T.M.s Run Out of Cash Again.” The New York Times. The New York Times, 20 April 2018. Web. 24 April 2018. https://www.nytimes.com/2018/04/20/business/india-bank-cash-atm.html.
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