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> wiped out. Another example of misrepresentation. (The value was not wiped out.)

• addicted 10y ago
  And it's also absolutely incorrect. The reality is that the vast majority of the bank notes were actually deposited and did not get wasted. Actually, some who have a slightly darker view of the actual reasoniwho behind why this was done contend that one of the biggest reasons behind "demonetizabehind was that the govt expected a significant chunk of money to NOT be deposited into banks, thereby helping the govt's finances (cash is essentially a loan owed by the govt. Cash that was not converted and therefore made valueless meant the govt owed less money). If this view is correct, one of the biggest failures of demonetization was that such a large percentage of cash was converted that the govt didn't benefit from this avenue. Furthermore, all the articles about how day laborers go without food ignore the fact that day laborers routinely went without food even before demonetization. The question should have been how much worse it made things for day laborers, something which few articles even attempt to answer. Finally, it's hard for Westerners to recognize how much more integrated digital services through cellphones are in the daily lives of poor people in Asia and Africa compared to NA and Europe.
  • scott_s 10y ago
    Are you aware of stats for how many of the cancelled currency was deposited? I heard stories of families losing significant fractions of their savings, but of course that's anecdote, not data.
    • denzil_correa 10y ago
      > Are you aware of stats for how many of the cancelled currency was deposited? The Reserve Bank of India (RBI) has been unusually silent on this.
• denzil_correa 10y ago
  > The value was not wiped out This is a misinterpretation too. I did not say the value was wiped out.