There was panic run on ATMs across the Indian capital as Prime Minister Narendra Modi declared that Rs500 and Rs1,000 notes would no longer be legal tender.
Tens of thousands of people rushed to the nearest ATMs in a desperate attempt to get hold of Rs100 notes and to deposit the 500 and 1,000 notes with them.
Modi’s nationally televised announcement, aimed at battling black money, spread rapidly, with friends telephoning and messaging one another.
At the Saket shopping malls, long queues quickly formed at all ATM counters, with most people interested in depositing the Rs500 and Rs1,000 notes they had.
There was a lot of shouting as people in the rear of the queue egged on those in the front to quickly finish their transaction in a bid to beat the midnight deadline.
“What rubbish is this? All of us have been put into so much difficulty,” a middle aged man said loudly to no one in particular. A man in his 20s turned abusive.
Three young women who had been shopping suddenly dropped everything and rushed to an ATM. An elderly man asked a passerby: “Please tell me the location of the nearest ATM.”
Rajiv Mitra, a professional in Noida, made a mistake by withdrawing money last night – and ended up getting more Rs1,000 notes, as the ATMs were still dispensing the larger denomination notes.
Not everyone was critical though. A few felt that the sweeping step may perhaps eliminate black money and entrenched corruption.
One man said he had come across a counterfeit Rs500 note a few days back and underwent a lot of trouble because of that.
“At least now there won’t be counterfeit currency anymore,” he said, talking to a small group of people.
Several residents said shopkeepers, including chemists, were already refusing to accept the notes. Even street vendors refused to accept 500 and 1,000 notes.
“I have bank employees as my customers and they warned me not to take these notes anymore,” said a man selling chaat near a Metro station in Noida.
“Yes, we are having problems now but the real problem will be faced by those who have hoarded lots and lots of cash with them,” interjected one man who too said he was a vendor.
Kerala residents had mixed reactions to the unexpected move.
“This is just going to be a big problem for people,” said a middle-aged man waiting in front of an ATM in the state capital to withdraw money.
“My God, what’s going to be the impact can be seen from tomorrow onwards when there will be unending queues in front of the banks and post offices. I do not have any unaccounted or such money... all that I have is my hard-earned money and now it’s going to be a pain to get changed the few notes that have now been withdrawn,” said Bessy John, a housewife.
Former Indian ambassador to Slovenia and Austria, T P Sreenivasan said he can recall of such a thing happening when he was in Myanmar and it appeared to have had an impact there.
State Bank of India chief general manager S Adikeshen said it was a move against corruption.
Former Kerala legislator and bureaucrat A K J Alphonse, now a Bharatiya Janata Party national executive member, welcomed the decision.
“This is a blow to those who have unaccounted money and this must be seen along with the decision that was taken before to disclose unaccounted money,” he said.
Bijoo John, an engineering student, said it was a good decision and all the bribe-takers and those who have unaccounted money will be in trouble.