Demonetization
Many of you probably don't know what this means. There is a a detailed article about "black money". I will explain to you want it means on the ground - in real life.
India is a cash society. Many places don't take credit or debit cards. Not only do they only take cash, they usually only take smaller bills, it is hard to get change in India.
We woke up last Wednesday morning (the same morning that the US's election of Trump was happening - it was a crazy day.) to the news that 500 rupee bills and 1000 rupees bills (about $15) were no longer legal tender. They were the biggest bills in India currency - so all we have is 100s, 50s, 20s, and 10s. There was no warning - just one minute our currency was worth something, the next minute it wasn't worth anything.
The reason they did it was to try to flush out "black money" which is what the above article explained. But it was very poorly executed and is causing massive problems. They are making a new 2000 rupee bill (about $30) which is ridiculous because no one needs a bill that big - we have no use for it. The ATMs are not calibrated for the new bills. It has now been 10 days and not ONE of the ATMS in the Bandra/Khar area has money in it. There was ONE that worked for 2 days in BKC near the school, but it no longer works.
They didn't have enough bills to change everyone's money so here are the rules put into place.
1) You could only exchange 4000
2) You had to deposit everything else.
3) You could only get 2000 out of an ATM a day AND NONE OF THE ATMS WORK
There were massive lines at the banks and there were reports of several elderly people dying doing to waiting hours in the heat.
I stood in line on Sunday for 1 hour and 15 minutes. I deposited my 29,000 rupees and then withdrew 10,000 from my checking about. Many people in line had bulging pockets full of cash and shopping bags full of money. HALF of India's population have no bank account. They cannot withdraw money like I did.
Many of us pay our maids/drivers/ at the end of the month. Let's say a couple needs to pay their helpers 40,000 - if you use 100 rupee bills that is 4 HUNDRED bills to pay them. NO ONE HAS THAT. Which means they won't get paid :(
Smaller shops and produce vendors are being hurt. They only take cash and no one has it, so they go to bigger stores that use debit cards. I was talking to an India co- worker and he said he is spending way more money on Uber instead of a rickshaw because Uber takes cards. But a lot of lower status Indians do not have a smart phone and Uber app!! He is also spending a lot more on groceries order them online with his card, instead of paying cash at a small shop. I have a few of the new 2000 rupee bills, but I CANNOT USE THEM AT SMALLER SHOPS BECAUSE THEY DO NOT HAVE CHANGE!!
There are also reports of people dying because hospitals won't treat them because they do not have new money. In India - you have to pay upfront to be treated at hospitals. There was a premature born baby and the parents couldn't get enough of the new money to pay so she died. Horrible.
Poor tourists are standing in line trying to get money, but again, you can only get 2000 a day IF the ATMS work - they don't have a bank accout to get money out like I do. I'm guessing a lot of their once in a lifetime vacations have been very stressful!
My yoga teacher and I were talking about how getting money has been a full time job for some people. The lines in his area start at 5:30am for a bank that opens at 9am!!!! People are spending HOURS of their days trying to get enough money to survive. Banks are only open 9-3 so if you have a job, you are screwed. The wife of one my colleagues filled out all the correct papers, stood in line for hours, and was denied money because she didn't have a letter of PERMISSION from her husband.
Oh India. Like any country, India has its great things and its no so good things. this is one of the craziest things I have ever seen.
Many of you probably don't know what this means. There is a a detailed article about "black money". I will explain to you want it means on the ground - in real life.
India is a cash society. Many places don't take credit or debit cards. Not only do they only take cash, they usually only take smaller bills, it is hard to get change in India.
We woke up last Wednesday morning (the same morning that the US's election of Trump was happening - it was a crazy day.) to the news that 500 rupee bills and 1000 rupees bills (about $15) were no longer legal tender. They were the biggest bills in India currency - so all we have is 100s, 50s, 20s, and 10s. There was no warning - just one minute our currency was worth something, the next minute it wasn't worth anything.
The reason they did it was to try to flush out "black money" which is what the above article explained. But it was very poorly executed and is causing massive problems. They are making a new 2000 rupee bill (about $30) which is ridiculous because no one needs a bill that big - we have no use for it. The ATMs are not calibrated for the new bills. It has now been 10 days and not ONE of the ATMS in the Bandra/Khar area has money in it. There was ONE that worked for 2 days in BKC near the school, but it no longer works.
They didn't have enough bills to change everyone's money so here are the rules put into place.
1) You could only exchange 4000
2) You had to deposit everything else.
3) You could only get 2000 out of an ATM a day AND NONE OF THE ATMS WORK
There were massive lines at the banks and there were reports of several elderly people dying doing to waiting hours in the heat.
I stood in line on Sunday for 1 hour and 15 minutes. I deposited my 29,000 rupees and then withdrew 10,000 from my checking about. Many people in line had bulging pockets full of cash and shopping bags full of money. HALF of India's population have no bank account. They cannot withdraw money like I did.
Many of us pay our maids/drivers/ at the end of the month. Let's say a couple needs to pay their helpers 40,000 - if you use 100 rupee bills that is 4 HUNDRED bills to pay them. NO ONE HAS THAT. Which means they won't get paid :(
Smaller shops and produce vendors are being hurt. They only take cash and no one has it, so they go to bigger stores that use debit cards. I was talking to an India co- worker and he said he is spending way more money on Uber instead of a rickshaw because Uber takes cards. But a lot of lower status Indians do not have a smart phone and Uber app!! He is also spending a lot more on groceries order them online with his card, instead of paying cash at a small shop. I have a few of the new 2000 rupee bills, but I CANNOT USE THEM AT SMALLER SHOPS BECAUSE THEY DO NOT HAVE CHANGE!!
There are also reports of people dying because hospitals won't treat them because they do not have new money. In India - you have to pay upfront to be treated at hospitals. There was a premature born baby and the parents couldn't get enough of the new money to pay so she died. Horrible.
Poor tourists are standing in line trying to get money, but again, you can only get 2000 a day IF the ATMS work - they don't have a bank accout to get money out like I do. I'm guessing a lot of their once in a lifetime vacations have been very stressful!
My yoga teacher and I were talking about how getting money has been a full time job for some people. The lines in his area start at 5:30am for a bank that opens at 9am!!!! People are spending HOURS of their days trying to get enough money to survive. Banks are only open 9-3 so if you have a job, you are screwed. The wife of one my colleagues filled out all the correct papers, stood in line for hours, and was denied money because she didn't have a letter of PERMISSION from her husband.
Oh India. Like any country, India has its great things and its no so good things. this is one of the craziest things I have ever seen.
No comments:
Post a Comment