India Counts Notes As America Counts Votes

We arrived November 26, 2016 – unaware India began “counting notes, when America was counting votes”. November 8 at 8:00pm, Indian Prime Minister Narendra Modi announced that 500 and 1,000 rupee banknotes would be withdrawn from the financial system overnight.

This surprise move was part of a crackdown on corruption and illegal cash holdings. India is overwhelmingly a cash economy; and 45% of all India financial transactions are made with 500 or 1000 rupee notes.

Banks were closed and ATM machines were not working for a day, and then the lines were incredibly long. New 2,000 rupee denomination notes were issued to replace the 500 and 1,000 ones removed from circulation. ATM’s began dispensing ONLY 2,000 rupee notes, limit of one per transaction, which resulted in no retailers accepting them because they would have to make change with their 100 rupee notes. Only banks would exchange the old 500 and 1,000 rupee notes, or make change for the new 2,000 notes received from ATM’s.

The SURPRISE move was designed to lock out money that is unaccounted for – known as “black money” – which may have been acquired corruptly, or being withheld from the tax authorities. “Black money and corruption are the biggest obstacles in eradicating poverty,” Mr Modi said.

But, the decision caused a crisis for the Indian people, especially the rural poor. We listened and observed the impact on their daily lives.

Can you possibly imagine this in America (1/5 population of India)?… SUDDENLY Credit cards and Debit cards are not accepted by any retailers, malls, gas stations = Only accepted by the most elite, five star hotels?

And, $20, $50, $100 bills are withdrawn from circulation overnight, by bank tellers only, while drive-up windows are closed. ATM’s dispense new $500 bills, limit two per day. Will anyone make change for $500 with $10 or $5 bills?

The consequence for Ray and Gay?
We survived our three weeks in rural India, living with students and the Sisters of the Congregation of Immaculate Conception at St. Antony’s Women’s College. We had arrived with only two 500 rupee notes (from last year) and quickly learned we could not get ANY new from ATM’s or banks.

Fortunately, we have developed many Indian friends since 2010, who exchanged our two notes, lent us a generous supply of 100 rupee notes; And provided for ALL our needs during a three week stay to present “Pathway for Life” to 180 students at St. Antony’s Women’s College.

Reflection:
“You cannot serve two masters…You cannot serve both God and money. Where your treasure is, there your heart will be also.” And, the US Dollar bill still declares: “In God we trust”.