The government could’ve considered adopting some simple ways to ease the troubles of people after demonetisation.
Increasing the number of mobile, micro ATMs, especially in rural area
Unlike cities, where ATMs are usually found within a couple of kms in any direction, rural population has to travel long distances to reach ATMs. In some places several villages have access to a lone bank and if they are lucky, a working ATM as well as mobile and internet penetration is also not sufficient to support ATM installations across all rural, hilly and other hard-to-reach areas. These areas are the worst struck. The government should keep it as a top priority since these areas don’t have many options of digital payments for daily spendings.
Demonetising old currency after releasing new currency
The demonetisation move could’ve been better implemented given the fact India is a cash driven economy. Demonetising currency within hours of its announcements left the whole country in a financial shock.The government could’ve kept the tenders legal till the deadline for depositing old currency in banks. As they are still being accepted for deposits in bank accounts, they could’ve been used for spending as well. It would’ve given a buffer period to start releasing new currency before invalidating the old currency. During which time the banks would’ve been able to recalibrate the ATMs without running out of cash.
Making the new notes the same size as the older notes
If you’re going to demonetise 1,000 notes, you may as well release the new ₹ 2,000 notes of the same size and not smaller than even the current Rs 100 notes. The recalibration process would’ve been much easier. The notes would’ve found their way into the ATMs much faster and people would’ve faced much less problems.
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