One may not have heard of the word ‘Demonetisation’ in India before November 8. From there on, this ‘word’ became more important for Indians especially politicians either to praise or to criticise the move. Along with the growing support within the country and even from abroad, Prime Minister Narendra Modi’s demonetisation step faced a lot of criticism as well.
In fact, opposition parties along with people slammed the government and termed the move as inefficient. They even called for protests and rallies all over the country against the announcement. Moreover, they demanded the Prime Minister to be present in the parliament and explain his decision. They even compelled him to address their concern.
Since the Day 1 of the announcement, people were seen standing in long queues in front of the banks. Even though the ATM centres were closed for most of the day, people were seen waiting to withdraw funds whenever the cash is available. Some places even saw few deaths and casualties because of the long wait.
GOOD NEWS FOLLOWED
PM Modi, during his announcement and also while addressing about the move in front of the public in several occasions, asked for a 50-day deadline for the situation to become better. As said, the cash crunch though not completely uplifted seemed to become better and better day by day.
RBI also revised the withdrawal limits step by step. In their very latest revision, the ATM withdrawal limit per card per day is increased to Rs. 10,000. The previous limit was Rs. 4,500. However, the savings account holder can withdraw a maximum of Rs. 24,000 per week.
On the other hand, current account holders can now withdraw Rs. 1,00,000 per week. The previous limit was Rs. 50,000.
NEED TO SWITCH OVER TO DIGITAL ECONOMY
Yes, at the moment the cash is in the flow like the pre-demonetisation days. But the point to be noted is that most of the cash is available in higher denominations (Rs. 500 and Rs. 2000). Smaller denominations in the likes of Rs. 50 and Rs. 100 are getting hard to procure. Reason being, it is held by individuals who hesitate to spend it and also ATMs has stopped offering Rs. 100 denominations since November 8, 2016.
Secondly, RBI has also reduced the number of free withdrawals from ATM to 3 from the previous 8-10. What happens here is, if you withdraw more than three times from an ATM, you will get charged which is inclusive of a service tax as well.
Both these will force people to switch over to Digital transactions. With all things considered, Digital Economy will be the backbone of Indian Economy in the following days.
Overall, if one can analyse the progression of the move, it is clearly evident that the move is cruising in the right direction. Let’s wait for the best to come in the very near future.