One week on: 25 deaths, chaos, never-ending bank queues and frustrated customers

Chaotic scenes and seemingly never-ending queues could still be seen outside banks and ATMs as people hustled to get valid currency notes for meeting their daily expenses after the Centre last week demonetised the old higher value bills.

Cash strapped people continue to wait in lines

Cash-strapped people were seen waiting in frustration as most of the cash dispensing machines ran out of cash within hours after being stocked.

In Delhi, people in large numbers started queueing up outside ATMs and banks from early morning but with limited success as many cash vending machines were running dry. Police also had to threaten an unruly crowd outside RBI with lathis.

Many ATMs not functional
While thousands of ATMs are still not functional. Adding to the customer woes, there have been reports of bank servers facing technical glitches.

Even ATMs at the Finance Ministry and Parliament House witnessed long queues with average waiting time of an hour.

It may take two more weeks before ATMs start dispensing new high-value Rs 500 and Rs 2,000 notes. Currently, they are mainly dispensing Rs 100 notes.

No money for daily needs

More and more people across the country are complaining about problems with regard to their daily basic needs as local stores have stopped lending goods and other essential items on credit.

Deaths due to panic 

Over the week, elderly people have collapsed in queues, patients denied treatment, crores of unaccounted money have been burned our dumped and at least 25 deaths have been linked to panic over the crisis. 

People are running out of business
Centre's demonetisation policy has impacted sales and production across sectors, with small eateries, sweet makers cigarette sellsers, alcohol shops, traders of chicken, eggs and poultry being hit the most. Most in Delhi said, they have nearly run out of business and had to incur losses during the first two days. Since then they have cut down their daily operations. ( Read more here) 

Marking customers with ink
Grappling with unending queues and frayed tempers in banks and to check operation of syndicates, the government yesterday decided to introduce a system of marking customers exchanging defunct currency notes with indelible ink from today onwards in major metro cities. This, according to the government, would prevent syndicates and certain kind of people coming to a branch again and again and misusing the note-exchange facility.

Weddings are getting postponed 
Weddings are getting postponed as bills to wedding halls, florists, and caterers are typically paid in cash across India.

SC declines stay on demonetisation

Meanwhile, the Supreme Court declined to stay the measure but asked the government what it was doing to alleviate the misery of people stuck in lines or those who don’t have enough cash on hand for everyday expenses. 

Markets near six-month low 
The markets fell two per cent on Tuesday, with the benchmark Sensex ending at a near-six-month low, on fears that the demonetisation move by the government would severely disrupt the economy, which is largely cash driven. ( Read more here) 

Rail tickets worth Rs 5000 and above booked between Nov 16 and 24 will not be refunded in cash
Rail tickets worth Rs 5,000 and above booked between November 16 and 24 will not be refunded over the counter in cash. People who booked such tickets will have to file a TDR (Ticket Deposit Receipt) and get the refund through cheques or Electronic Clearing Service. .A TDR has to be filed within prescribed time limit for cancellation of ticket across the counter as per refund rules i.e., half an hour before schedule departure of the train for RAC and waitlisted tickets and up to four hours before departure for confirmed tickets, said Times of India.

Grey market interest rate falls to mere 5 percent 

Interest rates for loans in the grey market have reportedly dropped to 5% from as high as 30% as business has been stifled by the drive against black money through demonetisation. "Under grey market lending schemes, investors pool in money that is lent to real estate developers, small companies and people in distress at high interest rates. Most of such loans are given in cash and there are no written agreements. They can’t now lend or accept repayments in the demonetised Rs 500 and Rs 1,000 notes, which were the most widely used," an Economic Times report said. 

Exports hit
Seafood exporters are in a quandary after demonetisation of high-value currency notes as they fear the crisis if prolonged and can lead to cancellation of orders.  The government’s surprise move to ban Rs 500 and Rs 1,000 notes has left the exporters of the perishable item a worried lot.  The exporters are finding it tough to make the materials available in time at ports for shipments. ( Read more here) 

ATM charges waived

All transaction charges at the ATMs have been waived for customers. This is applicable for transactions at the ATMs where customers hold the account, and other ATMs too.

Old notes can be used till November 24 to pay utility bills
 

The government has extended the usage of existing Rs 500 and Rs 1,000 notes for select transactions till November 24, 2016. The earlier deadline for the same was November 14. Under this, people will be able to use these notes to pay for medicines at government hospitals and private medical shops, to get essential items like LPG cylinders from government-run cooperative shops, to buy railway, metro, and air-tickets from the ticket counters, at milk booths, petrol stations, burial grounds, international airports, and to pay court fees till November 24.