30 days of demonetisation: Here’s what could have been done for better implementation of the scheme

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.

Written by Kanishka Singh | New Delhi | Updated: December 8, 2016 3:46 pm
Demonetisation, demonetisation aftereffects, Demonetisation effects, 30 days of demonetisation, ! month of demonetisation, government, government demonetisation, ATMs, Banks, At queues, bank queues, currency demonetisation, RS 500 notes ban, Notes ban, RS 1,000 notes ban, ATm caliberation, new notes, BJP, Narendra Modi, PM Modi demonetisation, Demonetisation debates, india news, indian express news The demonetisation move could’ve been better implemented given the fact India is a cash driven economy. (File photo)

It is the one month anniversary of demonetisation and after bearing 30 days of long queues and cash crunch, the country still awaits better days. Prime Minister Narendra Modi’s 50-day timeline is yet to see out its course. But the situation has not improved much on the ground. Demonetisation has elicited contrasting opinions among the people. By and large everyone has acknowledged that people are facing serious inconvenience on a daily basis and the scheme could’ve been implemented in a more effective manner.


It is also unfair to say that the government’s decision to tackle black money by demonetisation was pulled out of a hat a few months ago. In the course of events that took place after the BJP government came to power, this move actually fits. The government first announced plans to open Jan Dhan bank accounts for everyone in the country and gave ample amount of time. Then the government gave two separate windows to people to declare black money stashed abroad and black money and undisclosed assets in the country with tax amnesty or fines.

WATCH VIDEO | One Month Of Demonetisation: Where Do Things Stand

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.

WATCH VIDEO | Government To Waive Service Tax On Debit, Credit Card Transactions Of Up To Rs 2,000

Giving incentives to people to redeposit excess currency of the new notes

A major drawback seen in the implementation is that people are only withdrawing cash from ATMs and banks and shopkeepers and businesses who are getting ample amount of cash in legal currency are not redepositing it in the bank. If the government announces some incentive for those people and gets the money bank into the banking system then banks will be stocked with larger amounts of new currency notes to dispense to people in need.

Making POS terminals mandatory for shops, improving payment handling capacity

Since the government had the whole process to attack black money in mind for couple of years, they could’ve pushed a mandatory requirement for all shops to keep point of sale terminals. After demonetisation was announced, even the shopkeepers who want to adopt the POS process are unable to do so, since there is shortage of supply of such machines. Also, servers of payment gateways are not decked up enough to handle the increased traffic and many machines remain out of order with retailers. Several transactions via mobile wallets also fail due to server issues. The exemption could’ve been kept for small retailers like vegetable sellers, fruit sellers, roadside panwala etc. where short change would’ve done.

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  1. A
    Abhinav Gour
    Dec 8, 2016 at 9:52 pm
    Its the bank managers n staff that r responsible for all these chaos can they explain how come some received in lakhs of new currency these guys should be severly punished
    1. J
      Jagmender Arya
      Dec 8, 2016 at 10:32 am
      माननीय प्रधान मंत्री जीlt;br/gt;आपका काम एक दम ी था लेकिन आपका अनुमान थोड़ा गलत हो गया लगता हैlt;br/gt;अभी तक जितना पैसा आपने system में डाला है वह सारा का सारा ब्लैक हो गया है ,सतप्रतिशत कला धन हो गया है और ये खड्ड इतना बड़ा हो गया है की एक महीना बीत जाने के बाद भी कुछ फर्क नहीं पड़ रहा है बल्कि लगता है कला धन ज्यादा हो जायेगा और ऑफर तफरी मच जाएगीlt;br/gt;आपकी image और आपके इरादे एक दम नेक है , बस आप एक और चला दो और इस 2000 के नोट को बंद कर दो , फिर देखो कला धन और उसकी असली कालिख .और हाँ 5000 का मत निकाल देना ,सौ साल भी ये कला धन साफ़ नहीं होगा .
      1. S
        Satyendra Babu
        Dec 8, 2016 at 8:19 am
        elementary watson... ! the perpetrators of #Demonetisation missed out on out and out fundamental things ...How can they be so callous as to jeopardise daily life..... This is like Financial Section 144 ? ! ha It is obvious that everything will be status quo once re-cashed! #Demonetisation only got new notes in tearing hurry ..? ha Somebody once famously said:It is the economy stupid .. ? ha
        1. S
          Satish chopra
          Dec 8, 2016 at 8:15 am
          Absolutely correct,no one can dis agree with what has been suggested. lt;br/gt;I am sure present problems will take us in to February 17 and that too if govt take special steps for lower 40% of the potion first.Above 40% can still manage with digital means.lt;br/gt;Govt should offer 1% as cash back to traders on new cash deposit which can be claimed by them while paying income tax.
          1. N
            Dec 8, 2016 at 9:34 am
            Most bizarre step in the financial history of the country, forcing people into financial emergency, banks are refusing to disburse our own money....
            1. A
              Dec 8, 2016 at 10:52 am
              Should have given six months notice for people to transfer their loot elsewhere, such as gold, Real estate, Airline tickets, travel tickets etc then return the tickets and pocket the loot. Shameless India. Inherently dishonest India
              1. M
                Dec 8, 2016 at 9:13 am
                56incher is missing in Parliament. lt;br/gt;And when present his body language isn't as uring as during his speeches in rallies.
                1. P
                  Parth Garg
                  Dec 8, 2016 at 8:09 am
                  Sane advice on better implementing demonetization is a strict No No.
                  1. C
                    common man
                    Dec 8, 2016 at 8:32 am
                    Demonetisation management has been total nightmare.Govt proved again how incapable we are in implementing any ideas.Without planning,backup,strategy,no ground checks done as how this is going to hit in rural areas.And we talk about becoming super power.This is a joke.Our management Insute produces such qualified people who gets hired in Foreign MNC, cant we hire few , build strategy and implement.i think anyone would be glad to work their country if given chance.Once again common people suffers in the shadow of political EGO.
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