Middle men going through agony

The current demonetisation drive in India makes everyone startled and confused with the timing of the decision. Prime Minister Narendra Modi’s bold move is viewed sceptically with divided opinion on the benefits.

Some pundits claim that this drive could stop proliferation of black money in India and train people in future to shift to a cashless economy. In India, nearly 80 per cent of the economy is cash-based and the ratio of the banking to the unbanked consumers is abysmally poor. This promulgation added fuel to the fire on the poor’s agony, who are running from pillar to post to exchange old currency with the newer ones. Sobering stories, loss of productivity and long serpentine queues outside banks and ATMs to show desperation and frustration among the common public.

The whole drive puts everyone in trouble and with speculation on checking bank lockers makes people nervous and desperate. Small traders, property agents and middle men are going through the agony and looking for ways to exchange money.

According to India’s Ministry Finance, if you are a non-resident Indian (NRI), there are multiple ways to get your old notes converted. Any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall be given an opportunity to do so at specified offices of the Reserve Bank. Those holding old currency, but living abroad will have to come to India within the next six months and get it deposited in banks or get it exchanged. They can get it exchanged till March from the Reserve Bank.

If no options are working for you, there may still be an option made available, as per the statement by India’s Ministry of Finance: “For those who are incapable to exchange their 500 and 1,000 notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified RBI offices on later dates along with required documentation as may be specified by the Reserve Bank of India.”

With the uncertainty that Indians are feeling globally, it’s important to understand how to handle the present situation.

-The writer is a doctoral researcher on financial literacy in the UAE.