69% of India wants Rs. 1,000 banknote back in circulation
New Delhi, September 12, 2017: - Way2Online, a ‘media on mobile’ company that caters to seekers of news & information, has released insightful data on use of Indian currency post demonetization, which saw the arrival of new Rs. 500 and Rs. 2,000 banknotes across the country. Following an extensive market survey conducted to determine the state of currency exchange rate, it reports that an overwhelming 69% of the population responded with 'YES' when asked if there is a need for Rs. 1,000 denomination note.
It allstarted when Indian PM Narendra Modi sent shock waves across the nation when hedeclared that Rs 500 and Rs. 1,000 will no longer be legal tender, whichconstituted 85% of nation's currency notes. At that time, it was reported thatthe evolutionary move was to achieve two key objectives: eradication of blackmoney & shift towards cashless economy.
Althoughelectronic payments peaked in December 2016 to 957.50 million transactions asper as per the Reserve Bank of India (RBI) soon after the note ban, the volumecame down to 862.38 million transactions in July, 2017. This number is stillhigh as compared to 671.49 million in November, 2016, but it forced thegovernment to accept the fact that no leap can be giant enough for it tosuddenly transform the economy into cashless mode. Moreover, having releasedthe new Rs 500 and Rs 2,000 bills for easy swapping of old notes, the choice ofdenominations severely hurt the section of population that deal with smallerdenomination notes.
Thus, in abid to fill the gap and ease cash transactions by guaranteeing getting changefor larger denomination notes, the government introduced Rs. 200 banknotes on25th August, 2017, which could, according to RBI, also prove to be the mainlink in the Renard series. The Series, employed by several other countries,rules that the variation among the currency notes should be such that thesuccessive denomination is either twice or two and a half times the previousdenomination.
Followingthe launch of the new banknote, Way2Online conducted a survey with a samplesize of 2 lakh people, and sought their response regarding the launch of Rs 200note and if they feel that the new currency bill will solve their problems oftendering change for higher denomination.
RajuVanapala, CEO and Founder, Way2Online said on the survey’s findings, “Our extensive research showedthat 62% of the surveyed people faced 'tender exact change' problem ever sincethe Rs. 500 & Rs. 2,000 notes replaced the earlier demonetized notes, whilea considerable 38% stood firm that they had no issue getting the change. Whenasked if the newly rolled out Rs. 200 bill will help in fixing the problem, morethan half of the respondents, at 67%, were positive that it would ease the cashtransactions. However, a considerable 17% of the surveyed citizens claimed thatthe new currency note will make no difference, while remaining 16% stated thatthey have no idea how the new bill will affect the physical transactions.”
Interestingly,of the 62% who acknowledged having trouble with having to tender exact change,only 44% believed that the RBI's Rs. 200 move will solve the problem, while 10%of them are convinced that the current ratio is too big to be filled with justa single denomination note. Moreover, a minor 8% are unaffected with it,probably hinting at the fact that they've either accepted digital payments as amode of transaction or they have apprehensions about the availability of thenew notes.
Apart fromthat, while a noticeable 31% said that there's no need for the RBI to introduceany more currency values, 44% of people who gave a thumbs up for the Rs. 200note also asserted the need for the re-monetization of Rs. 1,000 banknote. Thisclearly establishes the fact that although majority are pleased with theintroduction of Rs. 200 note, the single denomination alone will not be able toresolve problems with the present currency system.
Furthermore,if the government doesn't give second thoughts to reintroducing Rs. 1,000denomination notes, the survey suggests that the launch of Rs. 200 may notyield expected results or have the kind of impact the government was hoping foramong the masses.