Rs 500/Rs 1000 Swap: How to Help Low-income Persons

Photo courtesy: Times of India

Yes, these are the times when we are anxious about exchanging our notes, worried about when ATMs will open, and long queues to get in and deposit money in banks and the many uncertain things we cannot predict.

And yet these are the very times that we need to and should help those who cannot understand the process or are out of the banking system.


Before I proceed, let me state this clearly: I do not understand economic policies. I do not know which policy is best for the country. I will let the experts decide on that. At this point, all I can do is to have faith in the Government and support them in the process.

We often feel that once the Government has taken a policy decision, it has to babysit each one of us while we pee and poop in our pants. Government is by the people. They can set certain systems in place and then each of us citizens need to step in and help others. We have to do our bit.

These are the ways you can help the low-income folks:

1. Many don't have access to bank but carry small amounts of Rs 2000 or Rs 3000 in the unfortunate old notes. What you can do is offer to take those notes and replace them with Rs 100 notes. Plan on depositing about Rs 10,000 and withdraw an equal amount for disbursal. ATM cards currently allow only Rs 2000 per transaction. Work around it. You can start with the maids, cleaners, sweepers, security guards, small vendors like those who sell fruits/flowers etc. I have already offered my help to folks in my colony.

2. At the time of writing, I have few Rs 10 notes and one Rs 100 note. The temptation is to save it for a wintry day. But you could do just the opposite. The small time vendors are losing business because people are afraid to part with their small notes. Step in -- buy from a fruit vendor a small amount of fruits or flowers. This chilly evening I consumed coconut water because I realized the guy had had no business since morning. I bought flowers that I didn't need because she needs the circulation of notes.

3. I am told demonetization will encourage cashless economy. But as I read it, it will benefit those businesses who can afford to have credit card/debit card machines. But for an entire world which is beyond the digital transactions, it is a bad time. Your local chaiwala cannot use Paytm. Your local vegetable vendor cannot use a credit card. This is the time you resolve to spend a portion of your cash in buying from small businesses and helping them stay self-sufficient.

4. I am hearing that many middle/upper class citizens are dumping their old notes on poor folks by threatening to not pay for their services. This is wrong. The poor because of the power structures sometimes are afraid to speak up and think that somehow they can circulate the currency back. Unfortunately, that may not be true. If you notice someone doing this in front of you, step in and speak up. Don't allow this to happen.

5. Some elders may be prone to anxiety and such a major change can stress them out. Step in and ask them if they need help in changing the notes. Or simply explain the process and empower them.

6. Look out for folks like low-income patients, poor transgender persons, disabled. Look out for low-income families who have an impending marriage. Ask yourself: who is missed out and what can you do about it?

6. Explain the process to everyone who is confused or cannot comprehend. You may have access to the latest updates on do's and don'ts. Share it with others. Empower all to be financially secure.