Indians line up at banks to deposit savings or see them disappear!
Indians lined up outside banks across the country on Friday, the last day for them to deposit their savings or see them become worthless after large denomination notes were scrapped in a bid to fight corruption.
Prime Minister Narendra Modi last month said 500 and 1,000 bank notes – worth a combined $256 billion and 86 percent of cash in circulation – would cease to be legal tender after Dec. 30, disrupting the lives of hundreds of millions.
“I’m here to deposit a few old notes before the deadline expires,” said Rakesh Kumar, queuing outside a bank in New Delhi.
“But I expect the government and RBI (central bank) to quickly replenish banks and ATMs with new notes so that we can withdraw without any trouble.”
Only 35-40 percent of ATM machines were currently dispensing cash, according to Ramaswamy Venkatachalam, managing director, India and South Asia, Fidelity Information Services, a banking technology provider.
Modi had said his government would end the chaos and restore normality in 50 days. But analysts said the impact would last at least six more months, with concerns about lower economic growth, job losses and a fall in demand for goods.
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