- Title: Indian villagers rush to banks to change money
- Date: 12th November 2016
- Summary: DUDKO VILLAGE, HARYANA (NOVEMBER 11, 2016) (REUTERS) VARIOUS OF HERDER WALKING WITH COWS WOMEN WORKING IN THE FIELD WOMAN CARRYING A LARGE BUNDLE OF HAY ON HER HEAD TRACTOR PASSING BY A HERD OF GOATS WOMAN STANDING WITH A BABY IN HER ARMS A VILLAGE ELDER STANDING WITH A GROUP OF WOMEN CROWDING THE BRANCH OF A VILLAGE BANK VARIOUS OF WOMEN STANDING OUTSIDE THE ENTRANCE TO THE BANK AN OLD WOMAN LOOKING ON (SOUNDBITE) (Haryanvi) VILLAGER, BOOTY BAI, SAYING: "If someone's child falls sick, they can't even go to the doctor because they do not have the money to pay the doctor, it is a big problem. And when the poor are going around to arrange for money, they can't manage to do it. Even if one or two people manage to get some money they don't give it to others, it is a big problem for us." A CROWD OF WOMEN PEEPING INSIDE THE BANK FROM THE ENTRANCE WOMAN LOOKING INSIDE THE BANK OLD 500 RUPEE NOTES BEING COUNTED BEFORE BEING DEPOSITED WOMAN STANDING AT THE BANK COUNTER WITH A STACK OF OLD 500 RUPEE NOTES IN HER HAND (SOUNDBITE) (Hindi) A MOTHER WHOSE DAUGHTER IS DUE TO BE MARRIED IN FIVE DAYS, SUNITA, SAYING: "My daughter's wedding is on the 16th of this month and we are really worried about how to arrange the money for such a big occasion. Bank officials are saying that they will give the money on Monday, how will we make our purchases?" WOMEN WALKING WITH LOADS OF LIVESTOCK FODDER ON THEIR HEADS A GROUP OF VILLAGE ELDERS SITTING AND TALKING VARIOUS OF VILLAGE ELDER SMOKING A WATER PIPE (SOUNDBITE) (Hindi) FORMER HEAD OF THE VILLAGE, CHAND SINGH, SAYING: "According to me this is a great step. This will put a lid on black marketeering. Those people whose go downs and beds are stashed with large currency notes, they will face problems exchanging their money. To gain something, you have to lose something also, for a few days there is some hardship to pay money, but these are tolerable problems. On the whole we are very happy with this move." PEOPLE WALKING IN THE MARKET A GROUP OF WOMEN WALKING IN THE MARKET ROADSIDE SHOPS SELLING SUGAR CANE AND EARTHEN POTS
- Embargoed: 27th November 2016 05:35
- Keywords: village currency exchange black market bank rupee Narendra Modi
- Location: DUDKO VILLAGE, HARYANA, INDIA
- City: DUDKO VILLAGE, HARYANA, INDIA
- Country: India
- Topics: Currencies/Foreign Exchange Markets,Economic Events
- Reuters ID: LVA0015850BPH
- Aspect Ratio: 16:9
- Story Text: Like many people across India, the residents of this farming community on the outskirts of capital New Delhi are rushing to the local bank, desperate to get new bank notes after the government said it was banning the current 500 and 1,000 rupee notes to flush out black money from the economy.
The inhabitants of Dudko village are far from wealthy and most of their economy is cash-based. Few have bank accounts and even if they do, they don't use them much. They are now bringing in fistfuls of tattered bills seeking to exchange them to new 500 and 2,000 rupee bills which went into circulation on November 10, before their hard-earned cash becomes worthless.
They have until December 30 to get the new bills or exchange them for 100 rupee notes but few are wasting time, worried about cash emergencies and the fact that there aren't enough new bills to go around. The government has said it might take up to two weeks for the new money to reach them.
"If someone's child falls sick, they can't even go to the doctor because they do not have the money to pay the doctor, it is a big problem. And when the poor are going around to arrange for money, they can't manage to do it. Even if one or two people manage to get some money they don't give it to others, it is a big problem for us," said one villager, Booty Bai.
For those, like Sunita, who have big expenditures on the horizon, the cash crunch is especially worrying.
"My daughter's wedding is on the 16th of this month and we are really worried about how to arrange the money for such a big occasion. Bank officials are saying that they will give the money on Monday, how will we make our purchases?" she said.
The currency move, announced late on Tuesday (November 8) night by Prime Minister Narendra Modi, aims to bring billions of dollars worth of unaccounted wealth into the mainstream economy and curb corruption.
Critics have warned that ordinary people who do not have access to the banking system will be hardest hit, and that Modi risks upsetting his ruling party's support base of small traders and businessmen who largely deal in cash.
But in Dudko village, despite the inconvenience, people were supportive of the reason behind Modi's surprise move targeting black marketeers and hoarders.
"According to me this is a great step. This will put a lid on black marketeering. Those people whose godowns and beds are stashed with large currency notes, they will face problem in exchanging their money. To gain something, you have to lose something also, for a few days there is some hardship to pay money, but these are tolerable problems. On the whole we are very happy with this move," said former village head Chand Singh.
Modi came to office in 2014 promising a war against the shadow economy that won him support from middle-class Indians who accuse elite politicians and businessmen of cheating the system.
India's "black economy," a term widely used to describe transactions that take place outside formal channels, amounted to around 20 percent of gross domestic product, according to investment firm Ambit.
Economy experts say the move would prove beneficial to India in the longer term, by ushering in transparency and bringing transactions into the formal economy and providing additional revenue for a country that has long struggled to contain its fiscal deficits.
They estimate the government could raise $30 billion in additional tax revenues from its scheme to withdraw higher-denominated bills, enough to significantly reduce India's fiscal deficit, which in the previous year stood at around $80 billion. - Copyright Holder: REUTERS
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