India’s Cash(less) Economy

Historically, demonetisation is not a new concept to India, when we reflect back to 1946 and then again to 1978. Black Money as per what we are tackling in 2016 seems to be the basic premise of these swiftly engineered moves. This time, however, Prime Minister Modi’s efforts have been directed toward lower denominations. In addition, the introduction of the Rs. 2000 note meant that there has been a strategic change in tactics.

I arrived in India during this moment of vicissitude. Unbeknown to me, I was positioned amidst Chennai’s worst times. The death of a beloved Chief Minister who was elevated to a godly status, repercussions of a horrific cyclone that brought a vibrant city down to its knees, and in addition to this ruckus, watching the ever-growing queues to gain just one Rs. 2000 note at an ATM or having waited for more than half a day, only to be turned away by the local financial institutions, as the RBI had not had the time to re-fuel the bank with the required cash, due to this expedited move. Unfortunately, Chennai had pulled the short straw.

What lingered in my head during this time were the lamented ideals professed by the former RBI Governor (1978) — I.G. Patel in his memoirs:

“Such an exercise seldom produces striking results. Most people who accept illegal gratification or are otherwise the recipients of black money do not keep…