LETTERS TO THE EDITOR

India did not put people first in demonetisation of 2016

I write in reference to your article India’s central bank says almost all banned notes returned (August 31): the Reserve Bank of India has officially stated that 99.3 per cent of the demonetised currency notes were returned to banks and exchanged for new notes.

Demonetisation was initiated by the government in November 2016 on the grounds that the amount of unaccounted wealth (about 25 to 30 per cent of the currency in circulation) would be exposed. Prime Minister Narendra Modi had announced that the loot of 70 years by many people would be exposed as a result of demonetisation. So, the basic objective of demonetisation seems to have failed since almost all the currency was returned officially to the banks.

It would appear that very little black money was rooted out as a result of demonetisation. However, the Indian people went through immense hardship for almost four months, standing in serpentine queues waiting for their own money. Farmers and small scale businessmen were the worst sufferers as their businesses came to a grinding halt. About 105 people died waiting in queues at the banks for their money.

Demonetisation was not necessary, the policy was not clearly thought through and the woes of citizens were not addressed. Governments should be more circumspect before introducing such policies, which inconvenience the citizens and could even cripple the economy by cutting GDP growth.

Rajendra Aneja, Dubai