Demonetization: A Crisis for People Living in Rural India
NB: The post has originally appeared on Facebook.
I had debates with many friends of mine and I realized there is a lot of information gap, because of which many of us are not able to realize how big the crisis is for those people living in rural India:
These facts may help one understand:
- 14 Lakh crore of Rs 500, Rs 1000 notes are in circulation which were turned useless by the Nov 9th declaration of the Indian government.
- Total population of our country: 129 crore
- Population living in village: 68.87% (88 crore)
- No. of villages: 640,867
- No. of branches of banks in villages: 45,117(till 2014), all over the country approx 1,17,280
- No. of ATMs all over country: 1.55 Lakh(not able to find rural India data)
- Post offices with banking facilities: 1.3 lakh
Even if we consider that the bank branches, ATMs and post offices are working properly. How do we expect them to cater to the need of 6 lakh villages and to an 88 crore population? Is this not too much? The reason we are a cash economy can be contributed to the above factor.
As per the Economic times report, if we go by this pace, it will take India at least 4 months to replace demonetized notes, not 50 days. Even after the end of this whole exercise, millions of
Indian will be left with their hard earned money without any option.
Lack of information is another factor to consider. The information doesn’t percolate to the inner lands of north India, which are closer to Delhi (forget about North-east and other parts). For example, we still have people who don’t know how AIDS is caused even when AIDS campaign is one of the most successful campaigns and done with every medium possible.
Though the people living in rural areas rarely get benefit of the development in this trickle down economy, but we are expecting them to face the harsh brunt of this decision.