Friday, November 11, 2016

Chaos for Cash

 

In its effort to bring out black money, the government overestimated  the efficiency of banks, and underestimated the time it will take to deliver new notes. Its now day 3 of the ban on high value currenty notes, and banks and ATMs have gone dry in the nation.

Meanwhile new generation plastic and e-cash startups have upped their ante, pushing new ads to market their services. And people are still converting cash into gold paying inflated rates.

The only good thing which happened to me was that Bangalore elevated tollway stopped charging their entry fees. So the tollways were free for all. And that lead to reduced traffic too.

I guess it will take at least a month to get fresh cash in circulation again.

Thankfully, cities like Bangalore had already gone majority cash-less. All supermarkets and most restuarants already accepted plastic money. In the wake of cash scarcity, they have reduced the minimum amounts required to make the transaction, and are letting people swipe cards for even Rs 50/-. Cab services which accepted cards and e-cash services had brisk business. But auto-drivers were left in the dark. There are talks of black marketeers charging upto 40% commission to exchange out the older notes in the system. There is also news of a person contacting the beggars-mafia to arrange for hard cash !

Somebody even made an Unboxing video of the new 2000 Rs/- note !

Sometime back I had read an article on gloomberg arguing why a cashless society cannot exist. I guess its author needs to take a second look at India.

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