In a bid to scrape out unaccounted wealth, the Indian government took a stern decision on discontinuing its Rs 500 and Rs 1000 notes and replacing them with new ones. The repercussions were severely felt across the country leaving the masses angry and weary. Long queues and empty teller machines are all that the entire population has been grumbling about ever since the move took place and has so far scripted the demonetization saga.
As people become more desperate for cash, the queues are expected to grow longer in front of banks and automated teller machines (ATMs). The shortage of ATMs dispensing money is largely characterized by cash shortage. Moreover, the incompatibility of new legal tenders such as the Rs 2000 note equivalent to that of US$ 30 is turning out be a havoc for the common populace. Likewise, the technical difficulty of fitting in the new smaller sized legal currency has troubled ATM operators to process an item which the system does not recognize.
Government authorities are of the view that the current cash distress is temporary and will only be there for a brief period. The currency transition process will take around two to three weeks for the banking structure can adopt it completely. The authorities also believe that the new monetary procedure will reduce cash-heavy transaction in the country in near future.
Meanwhile, the Prime Minister of India Mr Narendra Modi in his recent speeches has requested the nation to be patient with currency change procedures for at least 50 odd days. He believes the noble decision will help recover unaccounted money, as more than 80 percent of the currency being nullified.
The government has reasoned out the monetary reform as a necessary step for dismantling the untaxed cash or underground finance structure that has been driving the nation’s financial system toward disarray.
Summary: The recent demonetization in India has left the masses discontented