50 days of demonetisation: A reality check on what really changed in India
When PM Modi is getting ready to address the nation on December 31, the judgement day as per his own words, let us check what has changed since the decision was made
Fifty days have passed since Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 notes were no longer legal. There have been several developments that have taken place since November 8.
As PM Modi is getting ready to address the nation on December 31, the judgement day as per his own words, let us check what has changed since the decision was made.
Black money: The demonetisation was hailed as a move to wipe out black money from the country. With only 6% or less in cash as black money, the drive did not work much. Gold, Real Estate and options of tax havens are the untackled loopholes which demonetisation failed to address.
Economy on a fall: The recalled Rs 500 and Rs 1000 notes constituted 86 per cent of the currency in the country. The newly introduced notes have slowly come into the market.
Banks are still reporting cash deficiency and asked the government not to ease the withdrawal limits. Rs 15 lakh crore has been wiped out of the system post-demonetisation but only Rs 6.5 lakh crore has come back in the form of new notes. The demand-supply equation is nowhere near.
ATMs shut: One of the major worries is the closed ATMs. Only 60 per cent of 200,000 ATMs are functional. Some are not recalibrated to dispense new notes, and some don't have cash. Experts estimate that it would take another one or two months to restore normalcy in ATMs.
Rural India struggles with cash crunch: Many cities have embraced the new mantra of a digital economy. But, in rural India where even android phones are a big luxury, the problem is immense.
Many who still does not have a bank account rely heavily on cash transactions. Employers are finding it hard to give salaries without lower denomination notes.
Salary crisis: The salaries are a big problem. Only 10 per cent of 560 million working in factories is in the organised sector. Which means, only this 10 per cent are paid through the electronic transaction and the rest are in grave trouble.
Deaths: Demonetisation claimed around 150 lives in the first 50 days.