One week of demonetisation: was it a surgical strike or carpet bombing?

A week has passed since Indian PM Narendra Modi's shock announcement of withdrawing all the Rs 500 / 1000 notes in circulation.

A shopkeeper prepares a garland with Indian 10 rupees denomination notes (USD $0.15) for sale, especially for wedding season, in Jammu, India Source: AAP

Initially this sweeping move was termed as a surgical strike to combat black money and terrorism, but the initial euphoria has given way to despair, anger, chaos and even casualties, with people unable to find enough legal tender for everyday transactions.

 

It is estimated that the banned Rs 500/1000 notes formed 86% of the entire Indian currency in circulation. Whilst the ban was implemented immediately, the replacement currency took days to arrive. Banks and ATMs ran dry and queues outside banks spiralled out of control.

The demonetised Indian currency Source: Pixabay

People were queuing up for 10-12 hours, only to find out that by the time their turn arrived, even the banks ran out of money!  To compound the matters, ATMs were only giving out Rs 100 notes and were not calibrated to dispense the new Rs 500 or Rs 2000 notes.

 

It is alleged that at least two people died while standing in long queues outside the banks, and some people are reported to have committed suicide, after finding out that their money is now worthless.

 

There are also reports of people burning or tearing large amounts of the banned currency notes, in order to avoid prosecution. And there are reports that ever since the ban was announced on Nov 8, Rs 1.5 lakh crores ($ 22 billion) has been deposited in banks.

Exchanging notes will be like casting votes now Source: Supplied

And now there are reports that acquiring new bank notes from the bank will be made akin to casting a vote -- people will receive an indelible ink mark on their nail, as a sign of having exchanged old notes for new!

 

The Supreme court of India, whilst lauding this move as "laudable", has also urged the Indian government to do more to alleviate the problems that common people seem to be facing. In a statement, a bench of judges claimed "Discontinuing of higher denomination notes appears to be carpet bombing and not surgical strike", alluding to the fact that there is high "collateral damage'.

 

So hear this feature about the developments so far, which includes statements from PM Modi, CM of Delhi Arvind Kejriwal and Congress party's Anand Sharma.

 

Do share with us what your relatives / friends in India are telling you about the prevailing sentiment surrounding demonetisation!