India is one of the most cash intensive economies in the world “ 95 per cent of the transactions here are still made in cash despite there being 25 million credit card holders and around 662 million debit card holders in the country.
The consequent demonetisation and withdrawal of the legal tender status of Rs 500 and Rs 1000 notes (while at the same time intending to push the economy towards a less cash society) which was conceived as a surgical strike on black money brought all this to an abrupt stop.
When a country decides to take 80% of its currency out of circulation (that's 14 trillion notes), it is basically tightening liquidity in market, thereby forcing people to spend less. That's what the last ten days have looked like for most people. Everyone is feeling the cash crunch and suddenly being extremely thrifty about how they spent their rupee and thinking of how to make it last longer.
With no loose cash to spend, people find themselves spending only on what they need, thinking twice about whether to have that cup of chai, whether or not to eat out, visit the fish market for the freshest catch of the day or even order in.
For many, on a day to day basis, the demonetisation move has been a good lesson in learning how to save and how to live with lesser means.
I am totally trying to spend less these days in a bid to hold on to the Rs 100 notes as long as possible. Nobody seems to have change for the Rs 2000. We have stopped all unnecessary spending and definitely think twice before we buy something.
Schubert Braganza, Mapusa
Being a full-time house wife and mother of two, I'm not really effected with the chaos as much as my husband is. Yes, we have learnt to spend the Rs 100 note extremely wisely. We have stopped ordering food which we used to do on a regular basis as we do not want to use up our Rs 100 notes on ordering in.
Zita Godinho, Caranzalem
