Indians were transported back to the licence raj of the 1990s — just as they had queued up for essentials then, they are queuing up again to get their old notes changed.

While few will oppose the reasons for demonetisation, the implementation of the move is what is making many wonder if the Modi government has scored a self-goal. To begin with, 80 per cent of the notes in circulation are of the two denominations that have been demonetised, leading to a lot of hardships for the common man. Then again, the majority of the people who have been impacted are those who depend on cash for their daily needs.

The Government’s advice that one should use paperless money to tide over the hardship also cuts no ice as a World Bank report says India is home to 21 per cent of the world’s and about two-thirds of South Asia’s unbanked adults.

Besides, the Government does not seem to have not paid attention to the logistical nightmare of providing banks with the new currency. Of course, there are still no signs of the new ₹500 denomination notes, making those who have managed to get the ₹2000 notes wonder where they are going to be able to use them. When all the ATMs will start working again is anyone’s guess.

The things for which the old money could be used — basic necessities such as vegetables and pulses from state-owned cooperatives till a longer cut-off date — would also have helped. But since the mess of the changeover has already started, even if the Government does think of doing any of this now, it will be too little too late.

Senior Deputy Editor

Related Topics