India's currency crisis
It’s been a momentous and challenging couple of weeks for India.
Since PM Narendra Modi announced the demonetisation of 500 and 1000 rupee bank notes on 8th November as a part of anti-corruption measures, an air of panic and precariousness has quickly infused the nation. Millions have been thronging ATMs and banks in order to exchange their notes for lower denominations and deposit their money into bank accounts before the deadline of December 31st, after which these notes will be worthless. Meanwhile new 500 and 2000 rupee notes are beginning to be circulated.
Last week, we spoke with Chetna Sinha, the founder Mann Deshi - one of the Trust's partner organisations working with rural communities in Maharashtra and Karnataka - about what this means on the ground. She explained a number of ways that the organisation has been supporting Mann Deshi’s beneficiaries and wider communities throughout this time of instability. The organisation is two-pronged and functions both as a bank and a foundation - both of which have been vital during this time.
“I remember watching the Prime Minister’s speech. He said 500 and 1000 rupee bank notes will now be unusable. That was at 8 PM. I immediately called my colleague Rekha as I knew our clients would arrive at the bank the next morning with 500 rupee notes”
The communities that Mann Deshi works in are inherently low-income rural labourers, with many suffering a large opportunity cost of their working day. The organisation have therefore been working to ensure that local communities can suffer as little burden as possible throughout this time of instability.
Mann Deshi have been assisting people with filling out depositing forms; opening special counters for disabled and old people; taking their ‘mobile business school’ bus to local weekly markets to make depositing services more accessible to labourers; dispensing information on procedures of depositing and exchanging money via a network of field agents along with their local radio station. Since the announcement, they have served roughly 2500 people daily.
“We are doing whatever it takes to serve our clients.”
Accompanying the positive work that Mann Deshi is doing in the short term, is their concern with what this demonetisation process will mean for rural communities in the long term. With some 90% of India’s transactions done using cash, over half of the Indian population without a bank account and some 300 million without government identification, the consequences for India’s poor rural communities at present are both unclear and unnerving.
Mann Deshi works closely with communities to ensure their needs are met, and will continue to do so. Their invaluable work throughout this time of crisis has supported thousands, and BAT is honoured to be partnered with them.