Thursday, April 24, 2025
8:14 PM
Doha,Qatar
Riot police control people queueing to exchange old high denomination bank notes at a bank in Old De

Bank note denomination: Anger rising in India

 * Millions running low on cash

* Modi says demonetisation part of war on graft
* Crunch hits countryside, weddings in trouble


 Anger rose across India on Saturday as banks struggled to dispense cash after the government withdrew large denomination notes in a shock move aimed at uncovering billions of dollars of unaccounted wealth hidden from the taxman.
Hundreds of thousands of people stood outside banks for a third day for long hours trying to replace 500 and 1,000 rupee bank notes that were abolished earlier in the week.
These bills made up more than 80 percent of the currency in circulation, leaving millions of people without cash and threatening to grind large parts of the cash-driven economy to a halt.
"There is chaos everywhere," said Delhi Chief Minister Arvind Kejriwal and a bitter foe of Prime Minister Narendra Modi. He said Modi's move had upended the lives of the poor and working while the rich - whose wealth he had sought to target - had found loopholes to get around the new rules.
People argued and banged the glass doors of a branch of Standard Chartered bank in southern Delhi after the security guards blocked entry, saying there were already too many people inside the bank.
Others turned on Modi, criticising his ongoing visit to Japan while countrymen suffered at home. "He is taking bullet train rides in Japan and here you have old people knocking on bank doors for cash," said Prabhat Kumar, a college student who said he had spent six hours at the queue.
"He has made a terrible mistake."
But Modi said he would pursue the war against corruption and tax defaulters even if it meant going back decades to examine records.
"If unaccounted money is found out during the current clean up drive, accounts of tax evaders dating back to the country's independence in 1947 will be checked. If required I will hire people for this task," Modi said in a speech to the Indian community in Kobe.
He said he recognised people faced difficulties as the transition to the new series of bank notes takes place but he was confident they would stand by the decision as part of the war on corruption and to rid India of endemic poverty.
Nearly half of India’s 202,000 ATMs were shut on Friday and those that operated quickly ran out of the new notes as scores of people descended upon them.
Traders in Delhi's vegetable market said they were considering shutting down the market as cash was running out and banks were dispensing a limited amount.
"We might have to close down until the situation stabilises," said Metharam Kriplani, the president of the Chambers of Azadpur Fruit and Vegetable Traders.
People in Mumbai said grocers were charging 10 times the price of salt in return for accepting the old cash notes and in Bengaluru some people were using their old notes to buy one-time insurance policies.
The government has asked people to redeem the old 500 and 1,000 rupees notes by Dec. 30. The central bank said there was enough cash available with banks and that it had made arrangements to deliver the new bank notes all over the country.
Modi's move was aimed at shrinking the "black economy", the term widely used to describe transactions that take place outside formal channels and which could be as high as 20 percent of gross domestic product, according to investment firm Ambit.
india has unearthed 1.25 trillion rupees ($18.51 billion) of black money, including 670 billion rupees in the recent income disclosure scheme, since his government came to power in 2014, Modi said.
"Money that has been looted has to be recovered," he said, warning there could be more tough measures against the hoard of illegal money.
But in Dudko, about 75 kms (45 miles) from Delhi, villagers said they were struggling to pay for food and fuel, four days into the cash crunch.
One family was marrying off their daughter later this month and were worrying about their money stuck in the bank. "Bank officials are saying they will give the money on Monday. How will we make purchases," said Sunita, the mother.
Much of India’s rural economy is powered by cash transactions with few people having bank accounts or operating one even if they have an account.
Bribe and crime proceeds also go into this underground economy. While announcing the demonetisation decision earlier this week Modi had said he also wanted to strike against counterfeit 500 and 1,000 rupee notes that anti-India militants were using to finance acts of violence.

Comments
  • There are no comments.

Add Comments

B1Details

Latest News

SPORT

Canada's youngsters set stage for new era

Saying goodbye is never easy, especially when you are saying farewell to those that have left a positive impression. That was the case earlier this month when Canada hosted Mexico in a friendly at BC Place stadium in Vancouver.

1:43 PM February 26 2017
TECHNOLOGY

A payment plan for universal education

Some 60mn primary-school-age children have no access to formal education

11:46 AM December 14 2016
CULTURE

10-man Lekhwiya leave it late to draw Rayyan 2-2

Lekhwiya’s El Arabi scores the equaliser after Tresor is sent off; Tabata, al-Harazi score for QSL champions

7:10 AM November 26 2016
ARABIA

Yemeni minister hopes 48-hour truce will be maintained

The Yemeni Minister of Tourism, Dr Mohamed Abdul Majid Qubati, yesterday expressed hope that the 48-hour ceasefire in Yemen declared by the Command of Coalition Forces on Saturday will be maintained in order to lift the siege imposed on Taz City and ease the entry of humanitarian aid to the besieged

10:30 AM November 27 2016
ARABIA

QM initiative aims to educate society on arts and heritage

Some 200 teachers from schools across the country attended Qatar Museum’s (QM) first ever Teachers Council at the Museum of Islamic Art (MIA) yesterday.

10:55 PM November 27 2016
ARABIA

Qatar, Indonesia to boost judicial ties

The Supreme Judiciary Council (SJC) of Qatar and the Indonesian Supreme Court (SCI) have signed a Memorandum of Understanding (MoU) on judicial co-operation, it was announced yesterday.

10:30 AM November 28 2016
ECONOMY

Sri Lanka eyes Qatar LNG to fuel power plants in ‘clean energy shift’

Sri Lanka is keen on importing liquefied natural gas (LNG) from Qatar as part of government policy to shift to clean energy, Minister of City Planning and Water Supply Rauff Hakeem has said.

10:25 AM November 12 2016
B2Details
C7Details