Demonetisation and after - Learn Vocabulary

The long, anxious, and frustrating wait by people outside banks and ATMs across the country over the last five days is an inevitable consequence of the decision to demonetise notes of Rs.500 and Rs.1,000. When 86 per cent of the value of notes in circulation turns suddenly invalid, as it did with Prime Minister Modi’s ‘surgical strike’ last week, a certain degree of disruption and pain is unavoidable. But the question is whether this chaos could have been anticipated and managed better than it has been. Replacement of the demonetised notes is a time-consuming exercise that requires planning of the highest order. The experience of the last few days shows that preparation was lacking and the transition could have been handled much better. ATM's are running out of cash quickly while banks are dispensing more of the Rs.2,000 notes than those of lower denominations.

What use is a high-value note if there is not enough smaller currency to make an exchange? 

Of course, it was never an easy task for the Reserve Bank of India and the Center to strike the right balance between secrecy and storing adequate quantity of notes for quick distribution. All the same, there are at least a couple of issues that could have been addressed differently.

The new Rs.500 notes that hit the market on Monday could have been released immediately after the announcement last week. Putting out new Rs.500 notes along the Rs.2,000 notes would have placed much less strain on those of the Rs.100 denomination, which are anyway in short supply. Second, it appears that officials woke up a little late to the issue of recalibrating ATMs. At least a day, if not more, was lost as banks realized the ATM's would not be able to dispense the new notes. The communication with the public, who were in a state of panic, could have been better, too. Thankfully, the Center has woken up to ease the pressure on the system by increasing withdrawal limits, allowing for petroleum outlets and hospitals to accept the old series of notes until November 24 and pushing more cash through post offices. The worst-affected are people in rural areas and villages where cash is king and the banking system’s penetration is poor. The decision to relax cash-holding limits for banking correspondents, the crucial link between banks and villages, to Rs.50,000 and allowing them to replenish multiple times a day should help in faster distribution. This ought to have been done much earlier. The cash crunch of the last few days is certain to have an adverse impact on consumption spending, especially in the rural areas, with the resultant effect on the economy in the third quarter.

Source: The Hindu

Important Words in the Article & Their Meaning 

1. Anxious (adjective) (चिंतित) – feeling or showing worry, nervousness, or unease about something with an uncertain outcome
Synonyms – scared, distressed
Antonyms – brave, collected
Ex: Because she was suffering from anxiety, her therapist recommended taking some medication to help.

2. Inevitable (adjective) (अपरिहार्य)– certain to happen, unavoidable
Synonyms – imminent, assured
Antonyms – avoidable, doubtful
Ex: The changing of the seasons is an inevitable aspect of the Earth’s climate.

3. Disruption (noun) (व्यवधान)– disturbance or problems which interrupt an event, activity, or process
Synonyms – interruption, break
Ex: The scheme was planned to minimize disruption.

4. Transition (noun) (संक्रमण)– the process or a period of changing from one state or condition to another
Synonyms – passage, growth
Antonyms – decline, finish
Ex: The transitional office in Quebec was no longer needed.

5. Recalibrating (verb) (पुन:अंशाकन) – mark (a gauge or instrument) with a standard scale of readings
Synonyms – revise, diversify
Antonyms – remain, destroy
Ex: The goal of therapy was to recalibrate the system so that the struggle could be resolved.

6. Penetration (noun) (प्रवेश)– the action or process of penetrating something
Synonyms – infiltration, stabbing
Antonyms – departure, egress
Ex: Thus the danger of a pacific penetration of Macedonia by Austria became more remote.

7. Crucial (adjective) (महत्वपूर्ण) – decisive or critical, especially in the success or failure of something
Synonyms – central, urgent
Antonyms – optional, trivial
Ex: During the hot summer months, it is crucial that you drink lots of water.

8. Replenish (verb) (फिर से भरना) – fill (something) up again
Synonyms – restore, furnish
Antonyms – damage, deplete
Ex: There was no food in the refrigerator, so I had to visit the grocery store to replenish our supply.