Chaos for cash. Millions of anxious people with Rs 500 and 1,000 notes mobbed banks across India throughout the day to exchange or deposit them after the government declared them illegal tender.
Thousands began assembling outside banks even before they opened after Prime Minister Narendra’s Modi’s surprise announcement on Tuesday aimed at curbing black money, corruption and terror financing.
People jostled to get lower denominations or new currency notes as a sweeping cash crunch caused all round chaos and inconveniences to buy even simple daily essentials.
At many places, people had to return disappointed because many banks ran out of cash just hours after opening for the day.
But at some places, desperate people kept waiting outside the banks even after they closed for the day with the staff still inside.
There was a huge rush of customers, many of them angry, outside Corporation Bank in Noida Sector 16 when it closed at 6 p.m.
A security guard said that people were asked to go after the bank disbursed all its cash by 3.30 p.m. “They are still not willing to go. A couple of them began fighting with me.”
Similar scenes played out at nearby Kotak Mahindra and Canara Bank where people argued with bank officials to let them in.
“I have no cash since yesterday. Will anybody make them understand the hardships I have gone through in the last two days?” shouted Rama Krishnan, an HR executive with a tech company.
However, many banks worked till late. An official of HDFC Bank in Delhi’s Model Town said they disbursed “lakhs of rupees to desperate customers” till late evening but could not cater to all.
Those left out were asked to come again on Thursday, the official said, refusing to reveal his name.
Earlier, serpentine queues started near banks across the country hours before they opened.
Bank officials stood outside distributing withdrawal or exchange forms to customers prescribed by the Reserve Bank of India.
The government had said Rs 4,000 worth of spiked currency can be exchanged daily but most banks halved this amount to cater to most of the customers.
Anil Wadhwani, an executive with a retail chain, realized this to his horror — after being in a queue outside a bank in Delhi’s Lajpat Nagar for five long hours.
“I had brought four 1,000 rupee notes but could only exchange Rs 2,000,” Wadhwani said outside the ICICI Bank.
Chaos played out almost everywhere, including in Hyderabad, Mumbai, Kolkata, Chennai, Bengaluru and Chandigarh.
Innumerable households reported they had to scrounge for smaller notes and even coins to buy basic food items on Wednesday and Thursday.
“The problem is indeed massive for everyone,” said Naresh Kumar, a south Delhi resident. “Now the 500 rupee note is so common that virtually no one is unaffected. This is different from the earlier demonetizations.
“The tragedy has worsened because it is near impossible to even enter banks now to do NEFT and RTGS,” he added.
Anxious customers also crowded at post offices.
For many who managed to get hold of the new 500 and 2,000 rupees notes, it was like a war won. Many clicked selfies and put them on social media.
But outside they encountered fresh problems as they could not get them changed due to a virtual absence of Rs 100 and 50 and lower denomination notes in the markets.
Amid the public anger over the inconveniences, the government scrambled to clear confusion about the decision to demonetize.
Finance Minister Arun Jaitley said people might face problems initially but in the medium to long run they would definitely benefit from the move.
“It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws,” the minister said.
The government on Thursday said new Rs 50 and Rs 100 notes, having new design and security features, will soon be issued without withdrawing the existing ones.
“Design of Rs 50 and Rs 100 notes will also be changed. These notes with new design features will be slowly infused (into the system),” Economic Affairs Secretary Shaktikanta Das told reporters at the two-day Economic Editors’ Conference that started here on Thursday.
“The existing Rs 50 and Rs 100 notes will continue to be legal tender,” he added.
Das said new Rs 1,000 denomination notes having new design and security features will also be issued soon.
All banks have been directed to work for 12 hours on Thursday, Friday, Saturday and Sunday to clear the rush of desperate customers for exchange transactions and, if required, remain open even next Sunday (November 20).
Even ordinary activities of trade and commerce, grocery shops, saloons, multiplexes, malls and others came to a standstill on Wednesday in the near-total absence of customers as they ran short of lower denomination currency notes.
Meanwhile, Samajwadi Party Chief Mulayam Singh Yadav termed the Narendra Modi government’s decision as “anarchist” and called upon the government to keep it in abeyance for at least a week.
“The government has spread anarchy in the entire country. Common man is not even able to buy daily products,” Mulayam Singh told reporters here.
“The government should keep the decision in abeyance for a few days, at least for a week so that people can arrange something for their daily needs,” the SP supremo said.
Terming the government decision as “anti-poor”, the SP Chief also said that the government announced its decision in hurry.
The Samajwadi Party leader’s remarks came two days after the government, in an effort to fight black money, declared on Tuesday night that notes of Rs 500 and Rs 1,000 denomination were no longer legal tender.
“People are facing problem because of this announcement. Marriages may have stopped due to the decision,” the SP leader said.
He alleged that the decision was politically motivated. “BJP has taken this decision because of (upcoming assembly) elections.”
Uttar Pradesh, Uttarakhand and Punjab are to go to the polls early next year to elect new states assemblies.
Meanwhile, the SP Chief also said that the Samajwadi Party is with the government in its decision to curb black money. (IANS)