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The HD (High Denomination of 500/- & 1000/-) has now been demonitized. On the whole, it looks like part of the black money is surely recovered by the GOI. However, there have been people -mostly rural, the poor, and the elderly – that have had to endure quite some pain. Many small businesses suffered, but a lot has been taken in good stride as something that is “good for the nation” in the long run. How long will be that long run is anyone’s guess.

For now if someone has to exchange his/her older HD notes, they can do so at the banks. They need to fill out a form – like this one

dm-hd

Carry a copy of one of the listed IDs along with the original and get upto Rs.2000 exchanged in new currency and/or lower denominations.

I think they’ve started to put indelible ink on the right hand index finger so they don’t get repeat customers.

Were the GOI intentions noble or were they tainted with political gains to be had? Guess the common will never really know the truth. Although it is evident there are some fundamental gains to the country –

  1. Counterfeit currency is briefly arrested along with activities that go with it. But these will resume soon enough since the newer currencies have no additional security benefits/features.
  2. The GOI recovers part of the black money that’s stashed away in cash. GOI benefits even from the genuine notes that are burned, washed down rivers and canals,…
  3. This will lead to smaller currency circulation for a while bringing down inflation in the sort term.
  4. The high end property prices are expected to fall by at least 25%.

I think the GI could have planned it a whole lot better and ensured the suffering for common man is much reduced –

  1. Sending out delegates to help the farmers in villages by setting up make-shift ATMs and banks for easier and faster processing.
  2. Working better with the banks to ensure cash reaches common man through multiple channels.
  3. Introducing a “cash back” option like we have in most western countries where debit cards can be used at any point-of-sale (POS) terminal for cash withdrawal.
  4. Having a provision for senior citizens where they can be served much better.
  5. Working harder with the common man and the banks to ensure more people have accounts and can transfer money via portals/services like paytm and equivalents. This alone would have ensured smaller shock to the daily-wage-earners and small businesses.

Since the GOI took absolutely no steps in minimizing the blow to the common man, this entire scheme stinks more of a political ploy rather than a patriotic one.

We’ll know better soon enough.