Mom and I travelled to my maternal uncle’s house in Allahabad to celebrate Kali Puja and Diwali, a much-anticipated festive period in our family. Our plan was to return home after Bhaiphonta or Bhai Dooj, but unforeseen events disrupted our itinerary.
A Sudden Health Crisis
On the eve of Kali Puja, both my grandfather (Dadu) and uncle (Mama) had to be hospitalized. They had been unwell for some time, but their conditions took a severe turn on the day we visited Maihar. That same night, we rushed them to the hospital. While Dadu was discharged after a few days, Mama’s condition remained critical, keeping him in the ICU for an extended period. Consequently, our return journey had to be postponed. Fortunately, Mama was discharged yesterday, bringing some relief to our anxious hearts.
The Impact of Demonetisation
Adding to the turmoil, on the evening of November 8, Prime Minister Narendra Modi announced the demonetisation of all 500 and 1000 rupee notes with immediate effect. The decision aimed to combat corruption and counterfeit currency, but it sent the entire nation into a frenzy. Banks and ATMs were closed on November 9 to make necessary arrangements, and although ATMs reopened today, they are only dispensing 2000 rupee notes.
We had come to Allahabad on a short trip with a planned itinerary and return tickets. Carrying limited cash and no cheque books, we relied on our debit cards for cash withdrawals. The sudden demonetisation left us stranded with little cash.
While my mom returned yesterday with Dadu, I had to stay back due to the unavailability of tickets on short notice.
The ATM Chaos
Today, I ventured out to withdraw cash for my journey expenses. The scene at the ATMs was nothing short of chaotic. It felt like an assault, or “dhava bol diya” as we say in Hindi. Every ATM had long queues. The HDFC ATM was somewhat manageable with 25-30 people in an orderly line, but the State Bank of India ATM was in complete disarray.
The panic caused by demonetisation led to everyone scrambling for 100 rupee notes. Many ATMs had already run dry, and bank staff were overwhelmed by the demands. In some places, banks had to call in the police or close down to control the crowds. This situation was not unique to Allahabad. My mom faced a similar ordeal at an ATM in Kolkata, standing in line for a long time.
The Marketplace Madness
Later, I headed to the Chowk market to buy some items my mom had requested. Upon arrival, I witnessed a raid by Income Tax authorities. They were closing down shops and chasing customers away. The market was in disarray, adding to the already prevalent confusion. When I visited a sweet shop, the owner agreed to accept a 500 rupee note for sweets worth 450 rupees but charged a 10% exchange fee, clearly exploiting the situation to make a quick profit.
Reflecting on Demonetisation
The sudden demonetisation to curb corruption and fake currency has thrown everyone into a state of confusion, with people reacting in strange ways. I hope the situation normalizes soon, though we will have to adjust to these changes regardless.
This is the third time India has demonetised high-value currency notes. The first instance was in 1946, and the second in 1978 when Morarji Desai withdrew 1000, 5000, and 10000 rupee notes. The accompanying cartoon by R.K. Laxman from that era captures the public sentiment perfectly.
The first time it was done was in 1946.
As I prepare to return home today, reflecting on this trip to Allahabad, I realize it has been one of the most eventful and chaotic visits in recent memory. Here’s hoping for calmer days ahead!
It is for greater good Indrajit. It is unfortunate that you had to suffer inconvenience. Great post!
Yes Shivangi, I also hope that this demonetisation reduces the corruption and fake currency notes in the country. But the sudden death of 500 and 1000 rupee notes caused panic among public. It’s a logistic and administrative nightmare to make enough legal currencies available at every corner of the country given the size of the country and diversity of demography. Situation needs to be handled on war-footing to avoid its slipping into a crisis.
True Indrajit…!
Oh, that doesn’t sound good…hope they get it fixed soon!
Yes, it’s a massive task for the government to manage the situation in preventing it to become a crisis. Most importantly the purpose should be served at the least inconvenience to the innocent citizens.
Exactly.
Both SBI and UBI branches are situated in front of each other in our institute. So you could imagine the crowd and chaos here. If the condition is so bad in our campus (IIT Kanpur), it must be even worse in the main city.
The sudden demonetisation has caused a panic among the public. This has caused the chaos. To meet their demand, the government, the RBI and the banks need to act fast although it’s a logistic and administrative nightmare. I wish it gets over soon and the purpose is served.
It’s a minor inconvenience which have long lasting impact on our nation..tho the way u described everything is very entertaining entertaining
It’s a minor inconvenience if it doesn’t continue for long. The shortage is more acute in remote corner and the interior parts of the country where the economy is still cash based. I hope that it’s fixed soon.
True
After yesterday, the kind of mad rush at the ATMs all across the city, two things have emerged, (1) the Indians, by large, are not equipped to handle things calmly. There is an urgent need to bring discipline in the masses. (2) the govt (RBI) is not handling the situation in a professional manner. Seems there is not much coordination amongst the bankers. Ideally, if the demand is for 1lakh rs, the availability should be at least 1.10lakh in the ATMs. It is the other way around.
Hope the situation turns better in the days to come.
Aranjit, what you said is simple arithmetic but there should be availability of adequate number of currency notes in banks to be dispensed via ATM as well as payment across the counters. Lower the denomination more is the space needed. Banks cannot fill the ATMs with the value of cash as they were doing a couple of days ago.
500 and 1000 rupee notes made up more than 80 percent of the currency in circulation and so their withdrawal has left millions of people without cash and is threatening to grind large parts of the cash-driven economy to a halt.
Common people are naturally risk averse, so they don’t want to wait to get their old notes exchanged. They want the cash in hand to remain with the same value. A common man thinks it is better to have cash in hand, even if he requires only ₹2,000, he will feel safe withdrawing ₹10,000. 500 and 1000 rupee notes are now like “impaired cash in hand”. 🙂
We can’t blame public for this. When many opposition leaders are shouting that the decision is a flop and many others are spreading rumours, it’s difficult to get the general public disciplined. Yesterday, the salt was selling at ₹200 in UP as someone spread that there is going to be a shortage of salt soon!
It’s easy to put the blame on the RBI or on banks. At just 24 hour notice, it’s not feasible to ship required currencies to every corner of the country, even if that is available at RBI vaults, and make them available at the counters and ATMs of banks. With the introduction of new-look currency notes, all the ATM machines need to be reconfigured, which needs evacuation of the ATMs for old notes and finishing the back-end work. For this, an engineer has to physically visit an ATM and the reconfiguration could take 3 to 4 hours. And it will take a minimum of 10 days to get done with this reconfiguration process pan India.
It is the joint responsibility of the ministers, the government, the RBI, banks and local administration to explain to the public and stand by them to avoid chaos. Media should also contribute positively in this endeavour. Faith in the new system must be established at the earliest.
Let’s hope that the situation returns to normal soon.
Also we as a nation must curb our penchant for cash and embrace plastic/ electronic means of transaction. The smaller shop owners should be roped in to accept debit/ credit cards at the earliest. Any transaction over 2000rs must be through plastic/ electronic means.
Yes very true. We should move towards cashless economy as soon as possible. We need to adopt technology fast. But that needs more penetration of proper education among Indians. It will take time!
well as per the newspaper the new Rs 2000 note is not supported by many ATM machines, which is not really a great situation. Dispensing Rs 100 note is time consuming!
Yes all ATMs need to be reconfigured for ₹2000 and new ₹500 notes, which needs evacuation of the ATMs for old notes and finishing the back-end work. For this, an engineer has to physically visit an ATM and the reconfiguration could take 3 to 4 hours. And it will take a minimum of 10 days to get done with this reconfiguration process pan India. The situation may improve after 2 weeks.
Yes, dispensing ₹100 note is time consuming and also ATMs cannot hold large value of cash as the denomination is only ₹100 only so the machines dry up fast. This is a transition phase, anyway.
Right! Just concerned with the hardships faced by people who are not the real target.
Yes, some needy people are getting hit badly. 🙁 We all should be sensitive and support each other in this transition phase.
You are right! Let’s hope we get out of it soon!
Everywhere same picture! I have a programme for Kerala next monday, Naturally need some cash. My next door Bank though allowed me to draw little more than their limit of 4k but I had to stand in que for two consecutive days since the ATMs were not operating. Yesterday evening Axis Bank Sector III, Salt lake Br started functioning. So I got some more cash. People are in difficulties but everyone happily adjusted with the situation. The step taken has been welcomed by people. Thats is the reason people are standing with patience. Hope within next few days situation will improve with sufficient cash flow and more ATM operational.
All ATMs need to be reconfigured for ₹2000 and new ₹500 notes, which needs evacuation of the ATMs for old notes and finishing the back-end work. For this, an engineer has to physically visit an ATM and the reconfiguration could take 3 to 4 hours. And it will take a minimum of 10 days to get done with this reconfiguration process pan India. But everyone, especially bankers are doing their best and also they’re working for extended hours. So people are happily adjusting to it. It’s a temporary transition phase. Let’s hope that the situation returns to normal soon.
The fact that 500 and 1000 were declared as “not legal” tender caused all the confusion. And the lines and queues in banks and ATMs is causing havoc. While I hope the move achieves all its objectives, wish the exercise was implemented in a better way. As always the common man is suffering.
Very right Rashmi. Let’s also not forget that the common man is very much a part of the system that created black money.
1. Common man is the one who goes and gets his groceries from a retail shop for cheaper price, knowing that the retail shop hardly pays any tax at all.
2. Common man is the one who prepares fake rental agreements and shows it as proof for HRA.
3. Common man is the one who pays bribe (through black money) to a government official, just to seek favours.
4. Common man is the one who accepted ₹500/ ₹1000 (black money) from both political parties that are contesting elections.
5. Common man is the one who purchases a product without bill, to save money (thereby creating black money).
6. Common man is the one who offers bribe (black money) to the police for drunk driving, not wearing a helmet, etc. instead of paying heavy fines at the court.
7. Common man is the one who saves money little by little, purchases property and registers for under market value to save money (thereby creating black money).
8. Common man is the one who gives donation (black money) to a private school who won’t give a bill.
And there are many such cases, which have become a part of our lives.
I hope your dadu and mama are keeping better now!
Yes this whole process caused a havoc, but I hope its bringing the desired effect ☺
Thanks Mithai for asking. They are better now with the grace of the God.
Very glad to hear that!!☺
Best wishes to you and your family!!
Thanks and same to you. 🙂
Thank you!☺
It sure is disconcerting when the stable ground under your feet starts shifting. Hope things get back to normal soon.
Thanks Georgia!
Very apt cartoon
You Said It! This cartoon is from the unbeatable Laxman. We miss his bulbous-nosed, bespectacled ‘common man’ dressed in a dhoti and a distinctive checked coat.
https://youtu.be/lF-zxo9kP_k
The cartoon as an embellishment, to the most trending topic today, that never ceases to die down, and with each passing day, there seems to be more and more problems but hopefully , the continuous monitoring and review by the GOI will allay all fears.
Yes, queues are getting shorter and notes are being issued, albeit slowly. People are getting used to new normal – of cash shortage. We are resorting to digital mode as far as possible. Yes, many people are not in a position to use the digital mode of transfer. It will take time. Every change comes with initial discomforts and its share of pains. With regular monitoring and other steps in unison will serve the purpose. We all are hopeful that our hardships will bear fruits.
Its 3rd December now. The lines are very much there. Even though the “exchange” lines have vanished as the activity has been abolished. Reeks of a deeper malaise; inadequate currency.
Yes Ankurji, it seems that there could have been some more preparedness, like getting more stock of new currency notes, especially ₹500, ready before demonetising the old ones. It’s a big difference between ₹2000 and ₹100 that is making ₹2000 notes not so acceptable. Good thing is that this shock is pushing many transactions being done digitally. Hope, we will not lose this momentum of doing transactions digitally once the cash supply is normalised.
Cash shortage is still hurting common people and management of this situation could have been better. India is a huge, diverse and complex nation and so are its bureaucracy, leadership and institutions. It’s often difficult to get over the inertia.