Anindya Dasgupta & Sagar Mangal
The sudden demonetization move by the Government of India panicked Jammu residents and made them rush to ATM’s and Banks, resulting in long queues and overworked bank employees. Jammu Enquirer spoke with experts like Dr Dipankar Sengupta, Professor of Economics in University of Jammu and bank staff. Dr Dipankar Sengupta feels that the impact of this policy will have long term benefits as well as a short term problems. The positives include that the decision would help in taking out the lubricant of the shadow economy, this black money would now enter the national economy and would solve many problems such as inflation.“Now the government must give confidence to the farmers, since agriculture is not taxed and many farmers are still to open a bank account, even after the Jan Dhan Yojana was implemented”, said Dr Sengupta. Amongst the negatives, the implementation of this policy will bring certain problems but only on a short term basis like shortage of currency as Indians are not exposed to electronic money.
The common man and the long queue
While arguments remain on how such decisions affect the economy, it was the commoner who went through the burden of standing in long queues from November 11th. While speaking to several people who waited in long lines, to exchange or deposit their money several showed displeasure in the sudden manner the government announced the change of policy. “We have been standing here for two hours now and it’s never ending process, the government should have at least given some thought or given some time to us”, said Anil, an account holder of ICICI bank. “I support the decision, but still standing in long lines during working hours is a bit hectic”, said Anuj an account holder of Allahabad Bank. Some senior citizens standing in the lines were also displeased of the fact that no separate lines for senior citizens were arranged. There were reports of heated arguments and people collapsing in several banks in Jammu. Bank managers of different banks didn’t want to come on record but all welcomed the new policy.
Rules and Regulations
With the implementation of the plan, the common man was left with no other option but to follow the rules in order to exchange the old notes:
- A time period of 50 days(November 10th to December 30th) given to deposit existing notes in banks.
- From November 10th to November 24th, it can exchanged smaller and new currency at banks and post office using valid ID’s like PAN, Adhaar, voter’s card with daily cap of Rs 4000.
- From November 10th onwards new Rs 500 and Rs 2000 notes will be available to the public.
- Limit on withdrawals for ATMs will be Rs 2000 per day while Banks will have a withdrawal system of Rs 10000 per day; Rs 20000 per week( Rs 10,000 can be withdrawn only from the branch where the account was opened. Other branches will offer Rs 4000).
- No restriction on payments by cheque, demand draft and credit cards.