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  India   All India  21 Nov 2016  Wrap-up: Note-worthy or not

Wrap-up: Note-worthy or not

THE ASIAN AGE.
Published : Nov 21, 2016, 6:22 am IST
Updated : Nov 21, 2016, 6:42 am IST

Even days after the demonetisation, there was no let-up in the rush and long queues outside the banks and the ATMs across the country.

People stand in a queue to deposit and exchange discontinued currency notes, outside a bank on the outskirts of New Delhi. (Photo: PTI)
 People stand in a queue to deposit and exchange discontinued currency notes, outside a bank on the outskirts of New Delhi. (Photo: PTI)

Poll matters
Modi’s shock ban on high-value banknotes will hit the war chests of his rivals before state elections next year, sparking accusations that his strike against “black cash” will unfairly boost the BJP’s chances in polls.

Spending on the Uttar Pradesh election is forecast to hit a record 40 billion rupees ($590 million), despite the cancellation of big notes.

According to the Delhi-based Centre for Media Studies (CMS), which tracks campaign financing, the BJP relies on cash for less than two-thirds of its funding in a state like Uttar Pradesh. Its regional rivals use cash to cover 80 to 95 percent of campaign spending.

In the 2014 election, when Mr Modi swept to power with an electrifying campaign that included 3D holograms of him giving speeches in villages across India, parties spent a record 370 billion rupees ($5.4 billion), the CMS estimated.

Interim Steps  
Toll collection on national highways suspended till November 24 midnight.
Parking fee at airports has been waived .
Cash has been available at selected petrol pumps.
Indelible ink to be applied to weed out repeat withdrawal of cash.
Government lowered the exchange limit for defunct notes to Rs 2,000 from the existing cap of Rs 4,500, from Friday.
Up to Rs 2.5 lakh cash can be drawn from bank account for a marriage during the ongoing wedding season.

The issue
Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes.

The fallout
Ever since the announcement there has been a mad rush at the banks and ATMs to deposit old notes and withdraw new ones.

The problem
The country has over two lakh ATMs which need to be recalibrated to dispense the new Rs 500 and Rs 2000 notes. The process may take upto 2-3 weeks.

Age Take
The jury is still out on the full impact the demonetisation is going to have on India and its economy. While some reports suggest a dip in the GDP, a few experts says it will herald a new economic era.

However, the reaction of various political parties is very much on the expected lines. Those in the Opposition are sniffing an opportunity here to hit out at the Modi government. Their opposition seems more for the sake of opposition and to play to the gallery than base it on facts and figures.

Now all eyes are on the government as to how they mitigate public grievances arising out of the demonetisation.

Tags: demonetisation, narendra modi, black money
Location: India, Delhi, New Delhi