Pune: The Rashtriya Swayamsevak Sangh’s labour arm has asked the Narendra Modi government to take note of the "immediate adverse side effects" of demonetisation while welcoming what it called a "rare" opportunity to help those less privileged.
The Bharatiya Mazdoor Sangh also cautioned the government against pressuring people to go digital.
"We take serious note of the immediate adverse side effects like defects in implementation, cash shortage, slowdown in market, job losses, retrenchments, migrant labourers returning to their home towns," the BMS said in a resolution adopted at its 137th national executive committee meeting in Pune recently.
The resolution said that "MSMEs (micro , small and medium enterprises), (and the) manufacturing and construction sectors" were "facing setbacks", which "may have (an) immediate impact on the overall economic situation, which needs to be realistically assessed".
It said the government had earned huge revenues as a result of the note ban, which might lead to a situation of surplus revenue. "This gives a great and rare opportunity for the government to radically contribute to… labour and other groups in (the) social sector that need developmental priorities", such as those socially and economically backward, villagers, tribal people, the farm sector and micro and small industries.
"They are immediately adversely affected by the so-called demonetisation drive," the resolution said, adding the Centre had a "moral duty" to provide "colossal funds" for these groups by planning "meticulously" and considering their total job security, wage levels and welfare.
"Thrust has to be given to provide minimum wages, social security, employment, health and education, especially in the rural parts of India. India needs smart villages more than smart cities," the resolution said.