It's been exactly a year since the government's demonetisation decision. It changed the way people dealt with cash with businesses of many taking a hit. A year on, the situation has improved but the ghost of 'that period' is still haunting many. Citizens talk to TOI about how they are still reeling under the after effect
People ate less meat
People have reduced eating meat since demonetization and my business has decreased by 60%. My regular customers, who used to buy meat three times a week, have reduced it to one since demonetization was announced. My business is badly hit. I used to do a business of Rs6,000 to Rs7,000 now it is reduced to Rs3,000 per day. People do not have cash to buy meat and I cannot provide credit to them as my business is cash based. I also have other expenses to look after. In the initial stage, my shop used to be vacant as no customers use to visit. Things got better after some months but still it not as before.
Mohammad Naim Qureshi, poultry centre owner at Nelson Square
My drivers now carry just Rs5k in cash
Being a long-haul transporter with over 100 trucks shuttling across the country, I spent the initial days firefighting as my drivers were stuck in various states with wads of currency which had become worthless. It was shocking to hear about demonetisation and since our business is predominantly cash oriented, it created lot of problems. In long-haul journeys, drivers can carry anywhere from Rs25,000 to Rs50,000 in cash to take care of food, incidentals (repair work), toll etc, but now they were left holding pieces of paper. One of our drivers was stuck in Jharkhand as he had no valid currency to continue his journey to Guwahati. We then sent a man from Nagpur with cash and it took him two days to reach there. But a year down the line, demonetisation has changed a lot of fundamentals of my business. We are convincing drivers to accept salaries through bank accounts and giving them pre-paid diesel and toll cards. My drivers now carry just Rs5,000 in cash, five times less than last year, to deal with emergencies. The shift to digital financial transactions is slowly but surely happening in the sector. Over the last year, we have all adapted to the new system and things have now come back to normal.
Rajan Agarwal, transporter
Honest saving was construed as black money
The first few days of demonetisation were very difficult for us. There was so much confusion as nobody could figure out the reasons behind it or how to cope with it. We see a lot of women customers who keep some money aside from their household expenditures and invest it in gold or jewellery. Suddenly, this honest saving was being looked upon as black money which I feel was very wrong. But now things have settled. These women are also getting their money for household expenses through bank transfers being done by their husbands. Even women who come to shop with us now pay through cheques. What has also happened is that now people are buying as and when the need arises as most of their money is now lying in the bank. For us, bank transfers, cheque and credit card payments have become a norm. The implementation of GST is also not changing anything. Even if a customer insists on not paying GST, I tell them that you take a discount from me but do pay this tax as through this, you get to play a part in nation building.
Bharatbhai Sheth, co-owner of Batukbhai Jewellers
Many had to cut down their med dose
People faced a lot of difficulties soon after demonetisation. So many patients who had to stand in queues to take out money for doctor's fee and medicines. I too would tell many to pay later. The saddest part was that many would cut down on their dose and asked me to point out the most essential medicines which they had to buy. A visit to a doctor and buying medicine can cost minimum of Rs1,000. It created a lot of problems when only Rs4,000 could be withdrawn at a time. Though hospitals were accepting cheques and card payments, we were facing problems for making our daily purchases. But the real sufferers were common people who wanted consultations from physicians for ordinary illnesses. One year later, so many people are still not accustomed to using a credit card or Paytm on a visit to a doctor, though we provide these facilities. With cash situation easing out, things are back to normal once again
Dr Vandana Kate, physician
Customers were reluctant to pay through cards
We opened a little under a month after demonetisation and there was utter chaos in the market. It was the wedding and holiday season too. Since we are in the service industry, we had to offer many facilities to the customers like free home deliveries. We had to set up Paytm facilities but cash was short with us too as most payments were being made through digital transfers or cards. Many customers were reluctant to pay through cards as our bill amounts are usually around Rs500-700. But now that many companies and banks offer rewards points, people are getting into the habit of not paying in cash. I welcomed the move as it was to remove black money and people are still being investigated to unearth it. My business got more affected by GST than demonetisation. People who give a garment for ironing which costs them around Rs70 get miffed when they have to pay a tax of around Rs20 on it. I am seeing a fall in business only after GST was implemented
Geet Agarwal, owner of Just Clean drycleaners
Sale of flowers took a big hit
My business slumped after demonetisation. People got busy depositing money in banks. Wedding and party budgets also shrank. Most of my business was in cash, so we suffered a lot initially. But now I am giving a number of options for payments like Paytm, wallet and debit and credit cards. But to say that the business is back to the previous level would be wrong. The sale of flowers took a big hit as wholesalers were dealing only in cash. But now with digitalization, the prices have skyrocketed and there is no bargaining to be done. This is the reason that supply of exotic flowers was very less this year. The wholesalers brought only small amounts in the market as all transactions are now on bank transfers and incomes have to be disclosed. But the younger generation of business persons is very happy with this development. Business has bounced back as now there are so many offers for those who make digital payments. Online orders and instant payments have increased our volume of business even if the size of orders is small.
Piyush Rajanka, florist and owner of Fragrance
Many parlours on the brink of closure
Money drained out of our business after demonetisation. So many of my bookings got cancelled all of a sudden. I had an order worth Rs80,000 for a wedding but it was reduced to only Rs19,000 as the client said that I should do make up and styling only for the bride and her mother. Previously, women would come and take multiple services, but now with less of cash and the fact that they will have to dip into their bank account to make payment, most of them are getting only the bare minimum done. Putting up credit card machines and Paytm also costs money as we have to pay a rent and installation fee. Though the economy is largely back on track, the charm has not returned to our business. People who would previously never inquire about rates are now asking for discounts as GST also inflates the bill. That's the reason many of us have stopped keeping beauty products in our salons as they occupy space but returns on their sale are less. With competition so cut throat in our profession, many parlours are on the brink of closure
Bilal Hussain, hair stylist and beauty consultant
Scale of weddings has come down
Demonetisation has been a big dent on our business. The cash component was very high for us and this has had a very negative impact. It happened when we were in the middle of the wedding season and it was a terrible time as there was immense fear, which created a lot of confusion. Though it has settled a bit now, the pace is still slow. The scale of weddings has come down immensely. The mid-size weddings, which had a lot of cash spending, too have shrunk their budgets. The Indian wedding and events scenario has gone from ostentatious to austere, and these things are being discussed widely. Though it has had a very negative impact on my business, I feel that in the long run it will streamline spending and help business to grow in an honest manner. I can cite an example of a band party which till now only accepted cash payments. This time they requested me to pay only by cheque or bank transfers. This move will make this sector very organized.
Nilay Varma, event manager
Hard times over, benefits will now emerge
The initial two months were miserable for us. But the scenario improved as more and more people began to use plastic money and make digital payments. In the early days of demonetisation, we did lose out on our trader clientele as we stopped accepting cash. But, the youngsters and pensioners were a happy lot. Sales dipped by nearly 30% during that period. We did not have to suffer much for our day to day expenses as the entire supply chain coordinated well till new systems fell in place. The initial shock and misery could have been avoided had the government given some time to prepare for it. I feel the hard times are over and now the benefits will emerge. This single action has brought about a phenomenal change in the attitudes of people in terms of doing business. The markets have taken this very positively. I feel this move will make our economy stronger by creating an environment of transparency and a feeling of having contributed to making India a better place to live and do business.
Varun Sapkal, owner of 10, Downing Street
New Rs2k notes created more problems
Paan shop owner's business down to half
My business has reduced to half. Most of my customers stopped visiting our shop for eating paans when demonetization was announced. Before demonetization, I use to do business of Rs3,000 to Rs4,000 per day but now it is reduced to half. Initially, I tried to give credit to my regular customers but later even I ran out of cash. The new Rs2,000 notes did not help us much, rather it created more obstacles as we fell short of change. Our business depends on cash and on small changes but people had no option but use high-denomination notes. Even today I am feeling effects of demonetization.
Ashish Dhoke, a paan shop owner near Chhaoni
I had to send back many customers
When demonetisation was announced, many of customers visited my garage for help, but I could not due to lack of cash. I used to give credit to my regular customers and friends on small scales for repairing their vehicles. But many of the customers, who have to spend thousands of rupees in order to repair their vehicles, went back as I could not afford giving too much credit. While repairing an engine, there are many things which I have to buy from spare part dealers. But due to cash crunch, I had to send back many customers. My spare part dealer was also not able to supply me the needed material as I was unable to pay him in cash. Hence, the entire business was badly affected. Things are a bit normal, but many customers are still afraid to do repair vehicles with higher expenses
Sayed Fazil (Garage owner)
Last year's Diwali worst biz period
Demonetization affected my business in many ways. I was deprived of my own money for months by my customers. Many of my customers delayed payment for eight to nine months citing demonetisation. The entire business was in tatters as I was not able to purchase raw material to stich new clothes. I somehow managed to convince my cloth supplier to give me credit. I had to pay him soon but payments from my customers were delayed. Last year's Diwali was one of the worst business period in my life because of demonetization as people did not visit my shop. This year's Diwali business was very low, but was better than last year. We hoped things would be better after a while. But even now, my business is down to half. I am hoping that it will be better in coming days.
Dhanraj Singuwar, tailor
People buy fruits just to get loose change
People have reduced coming to my shop since demonetisation. The lack of cash and loose change has decreased my business. It is a direct result of demonetisation. When people stop visiting our shops due to lack of cash, our business ultimately gets affected. In the early days of demonetisation, business was very low. People rarely visited shops, but the situation slowly improved. In the early stages, my business was reduced to 75%. Even now, it has reduced to half of what it used to be before demonetisation. Ever since the decision was taken, I have observed that many people buy fruits just for the sake of getting change for their higher denomination notes. This irritated me a lot. People used to buy fruits worth just Rs30 and asked for change. I have refused to sell them fruits many times.
Dhanilal Sahu, fruit seller
I had to take loans from friends
Marriage is one of the most auspicious and memorable moments in one's life. However, it turned into a very difficult time during my son's wedding due to demonetisation, which announced just days before the marriage. I had to take loans from some of my friends to meet my financial needs during the time, as the expenses were piling up. But, the money we had in our hand was very less. Moreover, one could withdraw only a fixed amount during demonetisation, which too changed almost every day. But I guess in the long run, the initiative will be fruitful as the country is moving towards digitalization. The target was black money and with time, the decision will aid the country in its fight against injustice and corruption. The initial weeks after demonetisation were tiring and purchasing anything was difficult. But, the initiative has germinated hope in the heart of citizens regarding a cleaner economy
Pramod Parkhi & family
I was at my shop when demonetisation was announced. As I had no clue about it, one of my customers gave me Rs500 and Rs1,000 notes. I gave all my change and later felt tricked. In the days to come, I had to send back many customers due to lack of change. They used to get many times but I was not able to help them. Cash crisis has affected my business on a large scale. Before demonetisation, I used to cut at least 300 coconuts every day. Now, I can barely reach 100. The demonetisation decision has reduced largely impacted our sale
Prashant Taywade, coconut water seller
The retail pharma sector was probably one of the very few that noticed a sharp rise in sales post-demonetisation. Initially, the government allowed us to accept Rs500 and Rs1,000 notes. As a result, many people came and bought medicines using these notes. Customers who would usually restrict their purchases to a month's medicines, were stocking up for four months using old notes. Sales were up almost by 40% till February 2017 after which things started coming back to normal. When the Rs2,000 notes came, people would come just get to change by buying Rs100 worth of items. We stopped that menace and told them to either get change or deposit money with us. A year down the line things are completely back to normal. I have not opted for digital payment facility because the clientele I cater to prefers cash payment
Ajay Shrivas, medical shop owner
(Compiled by Barkha Mathur, Abhishek Choudhari, Viraj Deshpande, Praveen Tewari & Anupriya Mathai)
People ate less meat
People have reduced eating meat since demonetization and my business has decreased by 60%. My regular customers, who used to buy meat three times a week, have reduced it to one since demonetization was announced. My business is badly hit. I used to do a business of Rs6,000 to Rs7,000 now it is reduced to Rs3,000 per day. People do not have cash to buy meat and I cannot provide credit to them as my business is cash based. I also have other expenses to look after. In the initial stage, my shop used to be vacant as no customers use to visit. Things got better after some months but still it not as before.
Mohammad Naim Qureshi, poultry centre owner at Nelson Square
My drivers now carry just Rs5k in cash
Being a long-haul transporter with over 100 trucks shuttling across the country, I spent the initial days firefighting as my drivers were stuck in various states with wads of currency which had become worthless. It was shocking to hear about demonetisation and since our business is predominantly cash oriented, it created lot of problems. In long-haul journeys, drivers can carry anywhere from Rs25,000 to Rs50,000 in cash to take care of food, incidentals (repair work), toll etc, but now they were left holding pieces of paper. One of our drivers was stuck in Jharkhand as he had no valid currency to continue his journey to Guwahati. We then sent a man from Nagpur with cash and it took him two days to reach there. But a year down the line, demonetisation has changed a lot of fundamentals of my business. We are convincing drivers to accept salaries through bank accounts and giving them pre-paid diesel and toll cards. My drivers now carry just Rs5,000 in cash, five times less than last year, to deal with emergencies. The shift to digital financial transactions is slowly but surely happening in the sector. Over the last year, we have all adapted to the new system and things have now come back to normal.
Rajan Agarwal, transporter
Honest saving was construed as black money
The first few days of demonetisation were very difficult for us. There was so much confusion as nobody could figure out the reasons behind it or how to cope with it. We see a lot of women customers who keep some money aside from their household expenditures and invest it in gold or jewellery. Suddenly, this honest saving was being looked upon as black money which I feel was very wrong. But now things have settled. These women are also getting their money for household expenses through bank transfers being done by their husbands. Even women who come to shop with us now pay through cheques. What has also happened is that now people are buying as and when the need arises as most of their money is now lying in the bank. For us, bank transfers, cheque and credit card payments have become a norm. The implementation of GST is also not changing anything. Even if a customer insists on not paying GST, I tell them that you take a discount from me but do pay this tax as through this, you get to play a part in nation building.
Bharatbhai Sheth, co-owner of Batukbhai Jewellers
Many had to cut down their med dose
People faced a lot of difficulties soon after demonetisation. So many patients who had to stand in queues to take out money for doctor's fee and medicines. I too would tell many to pay later. The saddest part was that many would cut down on their dose and asked me to point out the most essential medicines which they had to buy. A visit to a doctor and buying medicine can cost minimum of Rs1,000. It created a lot of problems when only Rs4,000 could be withdrawn at a time. Though hospitals were accepting cheques and card payments, we were facing problems for making our daily purchases. But the real sufferers were common people who wanted consultations from physicians for ordinary illnesses. One year later, so many people are still not accustomed to using a credit card or Paytm on a visit to a doctor, though we provide these facilities. With cash situation easing out, things are back to normal once again
Dr Vandana Kate, physician
Customers were reluctant to pay through cards
We opened a little under a month after demonetisation and there was utter chaos in the market. It was the wedding and holiday season too. Since we are in the service industry, we had to offer many facilities to the customers like free home deliveries. We had to set up Paytm facilities but cash was short with us too as most payments were being made through digital transfers or cards. Many customers were reluctant to pay through cards as our bill amounts are usually around Rs500-700. But now that many companies and banks offer rewards points, people are getting into the habit of not paying in cash. I welcomed the move as it was to remove black money and people are still being investigated to unearth it. My business got more affected by GST than demonetisation. People who give a garment for ironing which costs them around Rs70 get miffed when they have to pay a tax of around Rs20 on it. I am seeing a fall in business only after GST was implemented
Geet Agarwal, owner of Just Clean drycleaners
Sale of flowers took a big hit
My business slumped after demonetisation. People got busy depositing money in banks. Wedding and party budgets also shrank. Most of my business was in cash, so we suffered a lot initially. But now I am giving a number of options for payments like Paytm, wallet and debit and credit cards. But to say that the business is back to the previous level would be wrong. The sale of flowers took a big hit as wholesalers were dealing only in cash. But now with digitalization, the prices have skyrocketed and there is no bargaining to be done. This is the reason that supply of exotic flowers was very less this year. The wholesalers brought only small amounts in the market as all transactions are now on bank transfers and incomes have to be disclosed. But the younger generation of business persons is very happy with this development. Business has bounced back as now there are so many offers for those who make digital payments. Online orders and instant payments have increased our volume of business even if the size of orders is small.
Piyush Rajanka, florist and owner of Fragrance
Many parlours on the brink of closure
Money drained out of our business after demonetisation. So many of my bookings got cancelled all of a sudden. I had an order worth Rs80,000 for a wedding but it was reduced to only Rs19,000 as the client said that I should do make up and styling only for the bride and her mother. Previously, women would come and take multiple services, but now with less of cash and the fact that they will have to dip into their bank account to make payment, most of them are getting only the bare minimum done. Putting up credit card machines and Paytm also costs money as we have to pay a rent and installation fee. Though the economy is largely back on track, the charm has not returned to our business. People who would previously never inquire about rates are now asking for discounts as GST also inflates the bill. That's the reason many of us have stopped keeping beauty products in our salons as they occupy space but returns on their sale are less. With competition so cut throat in our profession, many parlours are on the brink of closure
Bilal Hussain, hair stylist and beauty consultant
Scale of weddings has come down
Demonetisation has been a big dent on our business. The cash component was very high for us and this has had a very negative impact. It happened when we were in the middle of the wedding season and it was a terrible time as there was immense fear, which created a lot of confusion. Though it has settled a bit now, the pace is still slow. The scale of weddings has come down immensely. The mid-size weddings, which had a lot of cash spending, too have shrunk their budgets. The Indian wedding and events scenario has gone from ostentatious to austere, and these things are being discussed widely. Though it has had a very negative impact on my business, I feel that in the long run it will streamline spending and help business to grow in an honest manner. I can cite an example of a band party which till now only accepted cash payments. This time they requested me to pay only by cheque or bank transfers. This move will make this sector very organized.
Nilay Varma, event manager
Hard times over, benefits will now emerge
The initial two months were miserable for us. But the scenario improved as more and more people began to use plastic money and make digital payments. In the early days of demonetisation, we did lose out on our trader clientele as we stopped accepting cash. But, the youngsters and pensioners were a happy lot. Sales dipped by nearly 30% during that period. We did not have to suffer much for our day to day expenses as the entire supply chain coordinated well till new systems fell in place. The initial shock and misery could have been avoided had the government given some time to prepare for it. I feel the hard times are over and now the benefits will emerge. This single action has brought about a phenomenal change in the attitudes of people in terms of doing business. The markets have taken this very positively. I feel this move will make our economy stronger by creating an environment of transparency and a feeling of having contributed to making India a better place to live and do business.
Varun Sapkal, owner of 10, Downing Street
New Rs2k notes created more problems
Paan shop owner's business down to half
My business has reduced to half. Most of my customers stopped visiting our shop for eating paans when demonetization was announced. Before demonetization, I use to do business of Rs3,000 to Rs4,000 per day but now it is reduced to half. Initially, I tried to give credit to my regular customers but later even I ran out of cash. The new Rs2,000 notes did not help us much, rather it created more obstacles as we fell short of change. Our business depends on cash and on small changes but people had no option but use high-denomination notes. Even today I am feeling effects of demonetization.
Ashish Dhoke, a paan shop owner near Chhaoni
I had to send back many customers
When demonetisation was announced, many of customers visited my garage for help, but I could not due to lack of cash. I used to give credit to my regular customers and friends on small scales for repairing their vehicles. But many of the customers, who have to spend thousands of rupees in order to repair their vehicles, went back as I could not afford giving too much credit. While repairing an engine, there are many things which I have to buy from spare part dealers. But due to cash crunch, I had to send back many customers. My spare part dealer was also not able to supply me the needed material as I was unable to pay him in cash. Hence, the entire business was badly affected. Things are a bit normal, but many customers are still afraid to do repair vehicles with higher expenses
Sayed Fazil (Garage owner)
Last year's Diwali worst biz period
Demonetization affected my business in many ways. I was deprived of my own money for months by my customers. Many of my customers delayed payment for eight to nine months citing demonetisation. The entire business was in tatters as I was not able to purchase raw material to stich new clothes. I somehow managed to convince my cloth supplier to give me credit. I had to pay him soon but payments from my customers were delayed. Last year's Diwali was one of the worst business period in my life because of demonetization as people did not visit my shop. This year's Diwali business was very low, but was better than last year. We hoped things would be better after a while. But even now, my business is down to half. I am hoping that it will be better in coming days.
Dhanraj Singuwar, tailor
People buy fruits just to get loose change
People have reduced coming to my shop since demonetisation. The lack of cash and loose change has decreased my business. It is a direct result of demonetisation. When people stop visiting our shops due to lack of cash, our business ultimately gets affected. In the early days of demonetisation, business was very low. People rarely visited shops, but the situation slowly improved. In the early stages, my business was reduced to 75%. Even now, it has reduced to half of what it used to be before demonetisation. Ever since the decision was taken, I have observed that many people buy fruits just for the sake of getting change for their higher denomination notes. This irritated me a lot. People used to buy fruits worth just Rs30 and asked for change. I have refused to sell them fruits many times.
Dhanilal Sahu, fruit seller
I had to take loans from friends
Marriage is one of the most auspicious and memorable moments in one's life. However, it turned into a very difficult time during my son's wedding due to demonetisation, which announced just days before the marriage. I had to take loans from some of my friends to meet my financial needs during the time, as the expenses were piling up. But, the money we had in our hand was very less. Moreover, one could withdraw only a fixed amount during demonetisation, which too changed almost every day. But I guess in the long run, the initiative will be fruitful as the country is moving towards digitalization. The target was black money and with time, the decision will aid the country in its fight against injustice and corruption. The initial weeks after demonetisation were tiring and purchasing anything was difficult. But, the initiative has germinated hope in the heart of citizens regarding a cleaner economy
Pramod Parkhi & family
I was at my shop when demonetisation was announced. As I had no clue about it, one of my customers gave me Rs500 and Rs1,000 notes. I gave all my change and later felt tricked. In the days to come, I had to send back many customers due to lack of change. They used to get many times but I was not able to help them. Cash crisis has affected my business on a large scale. Before demonetisation, I used to cut at least 300 coconuts every day. Now, I can barely reach 100. The demonetisation decision has reduced largely impacted our sale
Prashant Taywade, coconut water seller
The retail pharma sector was probably one of the very few that noticed a sharp rise in sales post-demonetisation. Initially, the government allowed us to accept Rs500 and Rs1,000 notes. As a result, many people came and bought medicines using these notes. Customers who would usually restrict their purchases to a month's medicines, were stocking up for four months using old notes. Sales were up almost by 40% till February 2017 after which things started coming back to normal. When the Rs2,000 notes came, people would come just get to change by buying Rs100 worth of items. We stopped that menace and told them to either get change or deposit money with us. A year down the line things are completely back to normal. I have not opted for digital payment facility because the clientele I cater to prefers cash payment
Ajay Shrivas, medical shop owner
(Compiled by Barkha Mathur, Abhishek Choudhari, Viraj Deshpande, Praveen Tewari & Anupriya Mathai)
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