- With salary day nearing what are the challenges people have to face?
- With no respite measures and just advise from the government, people should be ready for economic crisis
- Here are 10 things people need to keep an eye on to understand the affects of demonetisation
Here are 10 ways to prove demonetising will create an economic crisis in the lives of the people.
1) How to withdraw salary?
December 1 is fast approaching, and people are worried about paying their rents, buying monthly groceries, paying bills. Especially those who do not have online transactions (can be anyone working in an organised company, or unorganised sectors including maids, daily wagers are surely worried about fulfilling their monthly commitments!
2) Banks, ATMs still have no cash
Photos and videos of people frustrated waiting in the queue and still not getting the money they have earned has led to a real concern. At some places, people have also reportedly ransacked the bank after waiting for long in the queue.
So just imagine how the situation will be on the salary day.
3) ATMs not equipped to dispense new notes
The new ₹2000 notes are smaller in size than the old notes. So the ATMs are not equipped to dispense these new notes. Thus ATMs have ₹100 notes, which run out quite quickly, forcing many to stand in the long queues leave the place empty handed. In addition to this, RBI does not even have sufficient ₹100 notes printed and ready to be dispensed.
4) Finance Minister's comments have made us worry
Finance Minister Arun Jaitley rightly said that no measure to recalibrate the ATMs could be taken as they wanted this step to be a secret. Clearly, he has no idea about how people are suffering to withdraw their hard earned money (forget black money). He even said that it would take at least two to three weeks for the machines to start dispensing new notes.
5) Drama created rumours, which has led to panic
The announcement on demonetisation was not done like breaking the news. But it had all the drama elements. Following the announcement, the issue is being sensationalised trying to attribute PM Modi with the credit of taking the greatest step ever. Rumours are ripe that there is nothing wrong in people dying or standing in long queues to get rid of black money. But for people who cannot withdraw their hard earned money and feel stranded due to a cash crunch, demonetisation has just created havoc. These rumours have led to panic as the reality has started biting people hard.
6) Work productivity compromised
People have to spend their time waiting in the long queues even to get money to reach their offices. People do not have money to buy food at the canteen. They are forced to order online and pay a heavy price for the food alone. All this has affected work productivity.
7) The cost of scrapping fake currency much higher than flushing out money not in circulation anymore?
According to a report in Huffington Post, printing cost of the notes being taken out of circulation is ₹12,000 crore. The total fake currency found is ₹400 crore. So how wise it is to waste ₹12,000 crore to remove ₹400 crore fake currency?
8) Suspicious moves
Modi government’s sudden move is a bit suspicious as SBI was reportedly stating that people had already started withdrawing smaller amounts of money from April, much before the move to demonetise ₹500 and ₹1000 became public. BJP’s West Bengal unit had suspiciously deposited ₹1 crore just before the announcement of the demonetization was made. To add to the suspicion, A Gujarat-based newspaper had an article published in April, stating the ₹500 and ₹1000 notes are going to be scrapped.
9) Stacking ₹2000 notes is much easier than stacking ₹1000, ₹500 notes
One doesn’t need much space to stack ₹2000 currency notes. In fact, it can be saved by arranging half the space and half the energy. So how will ₹2000 currency note prevent people from making it a black money?
10) Lastly, going cashless is just an idea which cannot be realised
In reality, there is only 46 percent banking penetration, 22 percent internet connectivity. In fact of the total population, 19 percent do not even have electricity connection. Those who are bragging about using online applications should know that out of 14 million merchants only 1.2 million have sale devices. With this infrastructure how can India go cashless?
So, thanks to demonetisation, havoc looks like the near future of the country!
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Last Updated Mar 31, 2018, 6:48 PM IST