Demonetisation of Rs 1000 and rs 500 currency notes

Well, the Modi Govt has taken a wise and bold decision to demonetise the old high value currency notes. It affects, more or less, each and every person and household.

And here we do not refer to black money hoarders, drug peddlers, arms dealers, kidnappers, dacoits, naxals, terrorists, foreign spies, or crooks.

God can only tell what the crooks will do with their stacks of currency notes since deposit of the same in bank accounts would be of no use in view of the recent clarification given by authorities. (applicable tax, penalty, etc). Already there are reports of burning of such currency, being dumped in garbage, and throwing of such notes in the Ganges.

One need not go far to look for and to search for the affected people. All the affected people are standing in long queues at all the banks and ATMs. TV channels are full of stories of the hardship being faced by sick persons, or those who are traveling or the families who have to arrange marriages, or others who may have other urgent needs.

Almost everyone is affected by the high value currency demonetisation plan of the Modi Govt, but people are still happy as they agree with the essence of the policy and are ready to face these small inconveniences.

In every household, there will be some or more such (now banned) currency notes and the people shall have to deposit all such notes in banks but the long queues at the banks are a hassle. At some homes, the banned currency might be in large amounts, though perfectly white and clean, but it might be causing some or more anxiety to the people.

Please note that despite the oft repeated assurances, people fear all kinds of tax departments. Their anxiety is like, “who knows if some day in future, any corrupt govt official may decide to harass us”, and we all know that such minor issues are often a big worry for common folks.

Actually, rich and mighty, who often have more black money than white, would hardly care for any small time official but a poor man is always terrified, since most people are unable to get rid of the fears inculcated during childhood. Remember the mother telling, “doodh pee le nahin to police wala aa jayega” (drink your milk or else, the police may come…).

I am myself felt the pinch - we can not order food from a nearby take away, we can not even buy any vegetables or minor refreshments, because the small currency is almost absent. We had to break open the gullak - piggy bank - for meeting minor day to day expenses. Any visit to market for purchase of groceries stands postponed till the normalcy returns at banks and ATMs. Even the few currency notes we have would be deposited in bank only after the queues become short or vanish entirely.

However, one thing is evident that despite this being a good and much appreciable policy decision, the execution and implementation by the Govt Machinery on one hand and by RBI, and Banks on the other hand has been far below expectations.

Here, I am not saying that bank employees are not working - actually, they are doing a great job but the fault lies in poor response by the banks’ higher offices. Fixing the ATMs - primarily upgradation of software - should not have taken so many days. (By the way, let me disclose that I know how banks function : I am a former banker).

Yet another issue is paucity of alternate mediums of disbursal of small denomination currency notes. Take for example, the Power Utilities, Transport Services like Buses, Railways, Metro Rail, too should have been provided with enough stocks of small denomination currencies. This non availability or underutilisation or completely not using the alternatives, is putting pressure on banks, and public is facing hardship.

If someone has time to read it, I would suggest that the urgent need of the time is just to make available the small currencies - notes of Rs 100, Rs 50, Rs 20, and Rs. 10.

I was hurt when Metro Rail forced me to recharge for full 500 rupees, since they did not have any 100 rupee notes to give in return. Actually, I expected him to return a few Rs 100 notes so that I may use it for rickshaw fare and to buy a cup of tea, etc. Still, I could accept the situation since it was a Metro Smart Card and I got full value for the money but imagine if I had to buy a ticket of Rs 20 only then should I forget the balance amount of Rs 480. One can not say if such things are ‘not’ happening.

The response of Metro Rail was irresponsible ( no fault of the young man at the counter but the whole Metro Rail ). This is unpardonable and must be rectified. The Finance Ministry and RBI may take note of it, please.

Most of the people standing outside the banks and at ATMs are the ones who have no cash to buy daily rations, vegetables, small items of daily use and the Govt needs to realise that some people might be going without food in extremely poor households.

Please consider as to why should the disbursal of small notes be restricted to banks.

Govt has railways, bus depots, power utilities, public phone companies, ration shops, and hosts of such outlets that may be used to disburse small denomination notes.

Let the Govt and RBI provide enough small currency notes to all such bodies and they may be allowed to disburse small amounts up to say Rs 1000 (One Thousand). At least, they should not be using the full Rs 500 for purchase of anything that is worth Rs 250 only. This will help to end the queues at banks and ATMs.

Kindly note that big gatherings of ( somewhat distressed and unhappy ) people might be exploited by mischief makers and all out effort must be made to see the end of all the queues from banks.