India’s demonetization exercise
Since 8th November 2016 when the Indian Prime Minister made the dramatic announcement to de-legalize Rs 500 and Rs 1000 notes in order to fight the huge problem of black money in the country, there have been views and counter views of all and sundry on each and every move associated with this major exercise.
While there is a lot of support among the general public, there are a lot many dissenting voices too with opinions ranging from the bizarre to ones that are much more thoughtful and balanced. Whatever be the case, this has been the major topic of discussion in news rooms, at bus stops, at shopping malls, at markets, at restaurants, at movie theaters, at hospitals and almost any either place you could think of.
Rather than going into the pros and cons of this move, I will list down a few eye openers regarding this exercise.
86% of cash
Before 8th November, did you all know that 86% (Rs 14 trillion) of the cash flow in India consisted of Rs 500 and Rs 1000 notes? This high percentage is also one of the key reasons that we have more than 90% transactions in India in cash making it a cash based economy. Now if I think of it, I almost always struggled to get Rs 100 notes from ATMs. There was always a constant need to get change from the nearest shop once the cash was withdrawn.