Saturday 19 November 2016

How to do demonetization or demonetization 101

Here is a dummies guide for demonetization. A few weeks before demonetization:
  • Issue rule that all tolls booths, petrol pumps, buses, railways, city restaurants, post offices, etc have to accept payment by credit/debit cards, mobile wallets, etc; in addition to cash.
  • Raise the limits on mobile wallets.
  • Issue rule that while purchasing any item, the buyer has a choice to pay by card, mobile wallet, etc.
  • Allow road side shops to load mobile wallets with cash and vice versa.
  • Upgrade ATMs so that they can dispense new notes.
  • Print enough new notes and disburse them at the start of demonetization
  • Allow foreigners coming and people going abroad unlimited exchange at international airports, as long as they show their passport and ticket.
As soon as demonetization begins
  • Customers can go their banks any time for deposit/withdrawal/exchange
  • Foreigners and senior citizens only allowed in other banks for first 2 days.
  • Women also allowed in other banks for next 2 days
  • After 4 days, men can also exchange in other banks.
The Indian government did not plan the demonetization well. It is causing problems for citizens. By planning well, the demonetization would have been a lot smoother for the poor.

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