A faulty plan exposed: Demonetisation move sees 5 rounds of changes in a week

Charu Kartikeya @CharuKeya | Updated on: 18 November 2016, 15:50 IST
A faulty plan exposed: Demonetization move sees 5 rounds of changes in a week
A faulty plan exposed: Demonetization move sees 5 rounds of changes in a week (Arya Sharma/Catch New

With the announcement of six new decisions pertaining to the demonetisation move, the Union government has completed five rounds of changes in a week to the original plan introduced on 8 November by Prime Minister Narendra Modi.

The government claims that all these changes have been brought in to make life easier for the common man, who is dealing with the tumultuous aftermath of the radical move.

However, the fact that these changes came after feedback shows that basic ramifications of the move had not been envisaged, exposing a faulty plan.

Also read - Arvind Kejriwal dares Narendra Modi: withdraw currency ban in 3 days or face revolt

The prime minister has said he had been planning the move for 10 months, essentially indicating that all resultant difficulties had been accounted for. But the story unfolding indicates that the government is not on top of the situation. After the first set of announcements were made on 8 November, five changes were made on 11, 13, 14, 15 and 17 November.

Take a look at the series of government announcements and subsequent changes announced:

8 November: The big bang

Lines outside ATMs demonetisation AFP Photo/Narind
AFP Photo/Narinder Nanu
  • All existing Rs 500 and Rs 1000 notes declared illegal
  • New Rs 500 and Rs 1000 notes to be released soon
  • Rs 2000 note to be introduced
  • Old notes Rs 500 and Rs 1000 to be deposited by 30 December
  • Exchange from bank worth only Rs 4,000 permitted for 15 days
  • Cash withdrawal from one bank account restricted to Rs 10,000 per week for 15 days
  • Overall cash withdrawal limit restricted to Rs 20,000
  • ATM withdrawals restricted to Rs 2,000 per day per card
  • ATM limit to be raised from 19 November onwards to Rs 4000 per day per card
  • No limit on depositing old notes
  • Non-KYC compliant accounts can only deposit upto Rs 50,000
  • Old notes to be accepted in govt hospitals/pharmacies; rail, bus and air ticket counters; at consumer co-operative societies; milk booths; cremation/burial grounds; petrol/diesel/gas stations of PSU OMCs; by passengers at international airports; for exchanging foreign currency at airports

11 November: The first round of changes

The government soon realised that it had not factored in toll plazas in its calculations and heavy traffic was piling up their across the country. Toll plazas were soon made a part of exempt installations. On 10 November, toll was entirely waived off across the country. Several other changes were also made -

  • All exemptions extended to 14 November, with modifications/extensions
  • Court fees also included in exemptions
  • ID proof made compulsory in consumer cooperative stores
  • No advance payments for utility bills allowed
  • Payments in toll plazas deleted from exemptions since NHAI declared the same separately

13 November: ATMs not ready

Lines outside ATMs in Amritsar demonetisation AFP
AFP Photo/Narinder Nanu
 
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