I am still contemplating whether this is a good, bad or sinister move.
I don't know if the BJP party's high people got a head start.
I know it has become very difficult and intolerable for a lot of people all over India.
I now realise that we still have awfully less number of banks to cater the public.
Some Pointers :
* Money is indeed coming out atleast as commissions. In the process, maybe about 20% of the black money may get into circulation. Most of the remaining 80% will be reconverted to higher denomination again and the rest will be left to decay/burn.
* Violence in J&K has almost stopped since Nov 8. Even a stone that is pelted would need a Rs. 500/- note, but now that it is invalid peace has got a chance.
* I am not sure if this is a result of demonetisation: Public examination attendance in the value has topped 90%
* Maoists in Central India and the Deccan are largely hampered as their stockpile is now just garbage. They may try to change by forcing locals, but that would make them lose very little support that they have.
* Bogus Financial firms and money lenders who lend for high interest will certainly be caught off guard.
* Though a hardship, this has forced lot of people to go digital (net banking/ mobile banking). These were people who did not go digital not because to avoid taxes, but because they were lazy or were not comfortable with technology.
* Hopefully, this will increase cash flow through taxes by a good margin.
These are all my opinions and I may be wrong. I am right now having 2 hundred rupee notes in hand for expenses. Don't know how long it will last. But I am surviving because I know how to use digital money. Not all people have the understanding of the tech or even the capacity to understand the same. I have enough in my account to pay digitally till my next salary (trying hard not to use credit card).
I still have a large sum in old denomination to be deposited to my account and waiting for the queues to shorten. I can wait and don't want to stand in the way of others who are in immediate need. Hopefully in a weeks time, I can deposit in time before my next EMI (pre-closing my running personal loan).
I feel there is one small, but significant step that could have taken by the government, which would have made life a lot easier. That would be ensuring that there is enough Rs. 100 notes available beforehand atleast with the RBI.
In the meantime, please visit the ATM/Bank only if you have the need for. You and I know how to live with digital money. But a lot of people live their life only with hard currency. Let people who live by cash spend less time at the banks. This would also lessen the burden of the bank employees.