On November 8, 2016 the Modi-led-NDA Government demonetised old high denomination currency notes. The objective is to curb the financing of terrorism, espionage, and smuggling of arms etc. into India.

Within four days, the banking system has handled about 18 crore transactions. The cash deposits are a staggering Rs 3 lakh crore thus far, while withdrawals are Rs 50,000 crore. This bold step is as an extension of the Income Declaration Scheme (IDS) launched in June 2016, which went on to unearthed Rs 65,250 crore of undeclared income and assets so far.

But there's been a collateral damage…

In the last few days, the Government's decision has claimed 4 lives. Mr Vishwanath Vartak (73), Mr Karthikeyan (75) and Mr Unni (48) died in the serpentine queues. Likewise, an infant baby boy died after being refused medical treatment in a private hospital in Govandi.

Pursuant to the deaths, Government issued a directive to banks and hospitals on November 13, 2016, asking them to arrange separate queues for senior citizens and disabled. It also suggested hospitals and caterers to accept alternative payment modes.

If you've been an aggrieved customer, approaching the District Magistrate can be the recourse against defaulting establishments.

Nevertheless, people are finding their way out…

Countless individuals circumvent this Government's effort to curb black money, are consulting Accountants and tax experts, who're taking their share and making hay while the sun shines for the advice rendered. Similarly, money exchangers are keeping a cut to covert old currency notes.

However, the Income-Tax authorities are on vigil, and any wrong move (which is unethical and illegal) can land you in hot soup.

Instead, here's how you can support the Prime Minister's effort…

Indeed the sudden demonetisation has caused a lot of trouble for the common man. There is a shortage of Rs 100 currency notes, lack of cash in ATMs and difficulty to exchange the new Rs 2,000 note.

These past few days have re-emphasised the importance of budgeting. "Think twice" is the common man's mantra before buying high ticket items in cash. The maxim 'A rupee saved is a rupee earned'' has a whole new meaning and the inherent value of owning denominations of Rs 10 and Rs 100 has shot up.

Despite the trouble, countless Indians have come forward in support of the Prime Minister. Here's a way to fight the liquidity crunch and support the Prime Minister effort…

No, we aren't talking about plastic money (debit and credit cards).

We are talking about E-wallets (Paytm, Vodafone's M-Pesa, Airtel Money, and many more) also known as "digital wallets".

E-wallets will not provide respite against small ticket purchases; but will definitely help in reducing your dependency on paper money.

The common myth surrounding the use of E-wallets is its level of security. Most individuals believe that E-wallets aren't safe and there are chances of fraud. But that isn't the case.

E-wallets work just like prepaid cards. You can use them for transactions without sharing your bank details every time. This provides an extra layer of security.

Moreover, they use encrypted connection to share confidential information. The technology supports "mPIN" or fingerprint scanning for extra authentication.

Regular users of E-wallets vouch for their simplicity, ease of use, and wide acceptability. E-wallets offer discounts and cash-back for using them. The user isn't required to maintain any balance or pay any maintenance fees.

But before you decide to select a suitable E-wallet, take a note of the following:
 

• You don't earn any interest on the balance lying in your wallet. So keep a lower balance in your E-wallets.
   
• While you get attractive cash-back offers as well as other lucrative deals on joining, you cannot cash-in your cashbacks. You can only use them to buy goods.
   
• Choose an e-wallet with wide acceptability. This will help you transact better. Remember, acceptance among major service providers is the key to transact faster.
   
• Opt for a company that doesn't charge you a fee on joining.

 

To conclude…

By using an E-wallet, you will play your role in helping build a responsible cashless economy. It can help curb black money and avoid serpentine queues.

So, put your foot forward to handle your personal finances smartly. The demonetisation move can serve as lesson to be responsible citizens, who earn legitimately and pay the taxes due. Your effort may look small and insignificant, but as a whole, you can move mountains.

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