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Demonetisation in India: ‘How do I feed my family now?’

The government’s decision to demonetise currency has hit India’s poor, day-wage earners particularly hard.

Demonetisation in India [Showkat Shafi/Al Jazeera]
The government announced on November 8 that it would withdraw 500 and 1,000-rupee notes from circulation to fight corruption and tax evasion. [Showkat Shafi/Al Jazeera]
By Showkat Shafi
Published On 21 Nov 2016

New Delhi, India – On November 8, a few hours before midnight, India’s Prime Minister Narendra Modi in a surprise decision banned 500 and 1,000-rupee banknotes in a bid to fight corruption.

India’s largest currency bills, worth just over $7 and $14 respectively, comprised 86 percent of the total notes in circulation and were extracted from the market at once. The bills in circulation amounted to $23bn.

This currency demonetisation has caused chaos as millions of Indians, who mostly use cash for business and shopping, have been lining up outside banks and ATMs.

READ MORE: Anger intensifies over India’s demonetisation move

The government says the demonetisation will wipe out counterfeit currency notes and black money – the term widely used to describe transactions that take place outside formal channels.

But many have criticised the government’s lack of preparedness for such a drastic step, which they say is likely to dampen economic growth and negatively affect the working class and farmers, most of whom are not part of the banking system.

Kishori Lal, a 34-year-old daily-wage worker, says: “For the past week, I haven’t received payment for the work I do. Every day, my contractor asks me to come back tomorrow, as he also doesn’t have money to pay me. How can I feed my family?”

Bank employees have been working 12-hour shifts without weekends off to meet the demand from customers wanting to exchange the banned notes.

“People are angry. They are frustrated and shout at us,” says one who asked not to reveal his name.

“I am working on Saturday and Sunday. Ever since the announcement, we haven’t taken even one leave.”

Al Jazeera’s Showkat Shafi found out how demonetisation is impacting people across New Delhi.

Demonetisation in India [Showkat Shafi/Al Jazeera]
People stand in line to deposit and exchange the banned currency notes outside a bank in New Delhi. [Showkat Shafi/Al Jazeera]
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Demonetisation in India [Showkat Shafi/Al Jazeera]
People are allowed a one-time exchange of up to 4,500 rupees [$66] a day to meet immediate needs. Those with larger amounts can have their money transferred to their accounts. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Hari Om, 32, who works for a daily wage, has not been able to exchange notes for the past two days. He still supports the banning of the banknotes, calling it 'a very good move' by the government. 'It is very difficult,' he says, 'but I am sure it will benefit poor people like us.' [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
The government has asked people to exchange the old 500 and 1,000-rupee banknotes by December 30. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Pradeep Kumar, 21, a street vendor at Delhi's biggest computer market, says sales have fallen significantly. 'My business has taken a hit after just a week. Hardly anybody comes any more because they don't have cash.' Kumar says that many vendors have resorted to taking old notes at a devalued rate. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Street vendors and shopkeepers complain about dwindling sales because of the cash crunch and people continue to line up to withdraw from ATM machines. [Showkat Shafi/Al Jazeera]
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Demonetisation in India [Showkat Shafi/Al Jazeera]
Shyam, 55, is a blind beggar who says that people have been asking him for change. 'I gave them at first, but I also ran out of it,' he told Al Jazeera. He rarely gets any money these days, he says. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
The long queues outside banks are exacerbated by the fact that people need to present ID cards to withdraw money, despite the fact that millions of Indians still lack proper identification. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
The government is standing by its decision to withdraw the bank notes, saying the new policy will root out counterfeit money and prevent corruption. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Chaotic scenes are seen across India as queues continue to grow and millions of anxious people try to exchange the old notes. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Amravati, 60, says she supports the government's decision. 'The crisis is big and I know people are suffering, but I am hopeful that things will be back to normal after 50 days, just as the government promised,' she says. [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Bhagwati, 64, says that poor people are suffering the most. 'Wealthy people have credit cards, and they don't need cash like we do to buy groceries. I spend my entire day standing in line hoping to get money.' [Showkat Shafi/Al Jazeera]
Demonetisation in India [Showkat Shafi/Al Jazeera]
Gangadhar Singh, 60, works for a daily wage and says he has been missing work due to standing in line all day to get cash. 'I have never missed work, even when I've been sick. Daily-wagers like me cannot afford to take leave because a day of no work means no money for that day.' He says the demonetisation has made the life of the poor more difficult. [Showkat Shafi/Al Jazeera]