Not that some section of Indian society will believe it but the effects of demonetization has not been good at all for the country. I was reading an article in the NY Times the economy is suffering. The manufacturing sector is contracting; real estate and car sales are down; and farm workers, shopkeepers and other Indians report that a shortage of cash has made life increasingly difficult. This has been noted earlier as well.

Indians had to line up for hours outside banks to deposit and withdraw cash. New notes have been in short supply because the government did not print enough of them in advance. The cash crunch has been worst in small towns and rural areas. The amount of cash in circulation fell by nearly half, from 17.7 trillion rupees ($260 billion) on Nov. 4 to 9.2 trillion ($135 billion) on Dec. 23, according to the Reserve Bank of India. No economy can lose that much currency in a few weeks without creating major hardship — certainly not one like that of India, where cash is used for about 98 percent of consumer transactions by volume. And while a growing number of people have debit cards and cellphones that can be used to transfer money, most merchants are not set up to accept such electronic payments.

There is little evidence that the currency swap has succeeded in combating corruption or that it will forestall future bad behavior once more cash becomes available. The government had said that people bringing more than 250,000 rupees ($3,660) of the old notes to banks would have to show that they had paid taxes owed on the money. Because of those rules, officials had expected that a lot of black money would never make it back to banks. Yet local news outlets are reporting that Indians have successfully deposited the vast majority of old notes. That suggests that either there wasn’t as much black money out there as the government claimed or that tax cheats found a way to deposit their hoards of cash without attracting the government’s attention, perhaps with the help of money launderers.

Hopefully things will get better as the weeks go by.

Jayalalithaa Jayaraman (24 February 1948 – 5 December 2016) was an Indian politician who served five terms as Chief Minister of Tamil Nadu, from 1991 to 1996, in 2001, from 2002 to 2006, from 2011 to 2014, and finally from 2015 to 2016. She was a leading actress before her entry into politics and appeared in 140 films from 1961 to 1980 in Tamil, Telugu, Kannada and Hindi industries. She was re-elected as Chief Minister on 19 May 2016 and took the oath as Chief Minister for the sixth time on 23 May 2016. She died on 5 December 2016 after 75 days of illness and subsequent hospitalisation, where multiple attempts to resuscitate her after she suffered a cardiac arrest failed.

On 22 September 2016, Jayalalithaa was admitted to Apollo Hospitals, Greame’s Road, Chennai, for infection and acute dehydration. Over the next 74 days, she was treated by a team of specialist doctors from Apollo, AIIMS and from the UK. Her condition slowly improved. Her official duties were handed over to her aide O. Panneerselvam on October 12. She was also said to be suffering from severe pulmonary infection and septicaemia, which were cured. During the course of treatment, her right arm was said to be swollen, as indicated by her inability to affix her signature on the November bye-election nomination papers for three of her party members who were standing for the elections. On 4 December, specialist doctors at AIIMS declared her “fit” and ready to be shifted to her house in Poes Garden whenever ready, indicating that she was well, conscious and aware of events around her since her first signs of major improvement in November. The next day, however, she was re-admitted to the CCU after she suffered a cardiac arrest around 16:45.

The hospital’s Executive Director Sangita Reddy said that she was in a critical state. The hospital also released a press statement saying that the chief minister’s condition was “very critical” and that she was on life support. According to India Today, AIADMK MLAs were summoned to the hospital to sign a declaration naming Panneerselvam as her successor. In the afternoon of 5 December, Tamil channels issued premature reports of Jayalalithaa’s death, which were swiftly rejected by the hospital. The hospital officially announced the death of the chief minister on 5 December 2016 at 11:30 PM.

Prime Minister Narendra Modi, during a special address to the nation, announced that currency notes of Rs 500 and Rs 1,000 denominations will be illegal starting 12 midnight on November 8. That is not even four hours after the surprising announcement was made. “Currency notes of Rs 1,000 and Rs 500 will be just paper with no value,” Modi said. The move comes as a strike against the hoarding of black money. “A few people are spreading corruption for their own benefit,” he said, adding that “corruption and black money is (sic) something we have fought for immediately after assuming office…There is a time when you realise that you have bring some changes in society, and this is our time to feel the same.” It was then that he announced that the Rs 500 and Rs 1,000 notes will be deemed illegal starting midnight.

The news comes days after Twitter was buzzing with photos of bundles of currency notes of Rs 2,000 that were being shared with the idea that the Reserve Bank of India might be issuing them into the market soon. Well, now the wait for those notes – and new Rs 500 ones – is almost painful. People wanted to know what this scheme was initiated? The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

Banks will remain closed tomorrow and some ATMs will also not function tomorrow and day after as RBI stocks banks and ATM machines with lower denomination notes, Modi said. The prime minister expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. He said he is hopeful that political parties, workers, social organisations and the media will go further than the government in making it a success. Following the announcement, there were huge crowds outside ATMs across the country as people lined up to withdraw currency of smaller denominations.