By Ajay Jain
The jury is going to be out for some time on demonetisation. History will deliver its judgment but only in the future, and that too with the benefit of hindsight. But for hundreds of millions, what matters is the current moment they have to survive.
This is not about the merits and demerits of demonetisation; it is about the rights and dignity of the marginalised. In one swoop, all those lacking Government recognised proofs of identity, those without bank accounts, those without an address, those not connected digitally have, in a manner of speaking, shot by the demonetisation gun fired from their shoulders.
Let us assess the situation as I write this. Over-the-counter exchange of old currency has been stopped. Even when it was allowed, there was a limit to it. What does one do in this situation? The Government allows you to deposit the same in your bank account, with no limits. Of course, and rightly so, the taxman has to be satisfied about it being ‘white’ money. After that, one is allowed to withdraw the same money in valid currency from their accounts even if there is a temporary cap.
No bank accounts for the poor
But there are problems beyond those being talked about commonly. Those without bank accounts are being turned away by banks when they go to open one in a significant number of cases. They are being asked to come back in a few days or weeks due to the increased workload. This includes domestic and office staff and their family members working not just for me but for many of my friends and acquaintances. What are these people supposed to do in the meantime?
These people have little or no valid currency for even their essentials. When this runs out, what will they do? Most employers do not have cash to pay daily wages and salaries - they can issue cheques but where do these get banked? Those tom-tomming the option of e-wallets forget that these people may not have the understanding of how these work even if they could afford connected mobiles. Forget the ‘lesser lot’ - my own mother might be uncomfortable using it. She understands cash and cheques - period. As do most people. In any case, there is no law making digital transactions mandatory.
Should banks be penalised for turning people down?
A resounding yes. If the Government wants every citizen to have access to banking, no bank should be allowed to turn away people wanting to open accounts. The demonetisation move makes a bank account a de-facto fundamental right of every citizen. Bank accounts should be opened not tomorrow, not in a week, not in a month - but on the spot when a citizen applies for one.
What about those without KYC documents?
There are still millions who do not have any Government recognized documents to establish a proof of identity and address - many are lucky to even have the semblance of a roof over their heads. What happens to these people? No bank accounts? Are we pushing these people into bankruptcy? Will they be victims in the hands of sharks who would offer to exchange their currencies at discounts going as high as 30 to 50 percent?
Villages with no banks
According to some statistics, four out of five villages do not have banking facilities. The number of those without reliable electricity and Internet connectivity could be close to this number. And illiteracy runs high. Where do these rural folks go? Spend hundreds of rupees and lose at least a day’s wages to travel to the nearest bank? With no guarantee they would get the service they have a right to?
No pain, no gain – or so say Facebookers
All ‘Modi-bhakts’ are chanting ‘no pain, no gain.’ Who are these people? They have bank accounts, digital wallets, and an ‘education’ to adapt to changed conditions and friends and family to bail them out temporarily. They are ‘Facebook activists’ who are unlikely to have taken to the streets for a cause, or ever understood that opinions have to be based on well researched facts and analyses as journalists are trained to. Some flaunt the fact that they did not have the currency to buy rice from the neighbourhood grocer so they ordered pizza using Paytm. Queen Antoinette would be proud.
It’s not about demonetisation – It’s about survival today
Repeat: This is not about the merits and demerits of demonetisation. It is about the poor who live by the day. How can we collectively be so insensitive and callous towards their plight? How will they buy food, pay rents, or send children to school? Is this the society we aspire to be?
Postscript: Even the supposedly poor could have substantial amounts of money, running into lakhs, saved as cash at home. These would be savings over decades. All tax compliant because annual income was below taxable limits. Will the taxman penalize these? Of course, this money would be of value only if it is not in the demonetised currency or can find its way into a bank account.
(Ajay Jain is an author, startup entrepreneur and photographer. He runs the popular social community, Kunzum Travel. Views expressed are personal.)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
