This Article is From Nov 14, 2016

Cash-Driven Rural India Grapples To Keep Up With Black Money Chase

People Queuing outside Haryana Grameen Bank to exchange/withdraw Rs 500 and 1000 notes

Pachgaon (Haryana): In a largely cash-driven rural India, the government's surprise move to scarp Rs 500 and 1,000 notes to check black money crisis has hit people hard as some of them even don't have bank accounts and are scrambling to get cash to meet their daily needs.

Just two-hours away from the national capital, in Haryana's Pachgaon, 18-year-old Rinku Yadav, who works as a security guard doesn't have a bank account. "All my work was happening in cash so I didn't open a bank account for myself. How will I even eat without cash?"  He said.

Sarpanch Captain Sube Singh said that there are about 35,000 people in the village and only four banks and four ATMs. While all the ATMs are shut, the banks are only getting Rs 2-5 lakh a day.

"Compared to other cities very less money is coming in banks here (Pachgaon). At least Rs 20 to Rs 30 lakh should come per bank but at Haryana Grameen Bank there is only Rs 2 lakh, which 20-30 odd people will take out in 10,000 and 5,000 denominations."

More cash is needed, admitted Haryana Grameen Bank manager Arun Yadav. "We got Rs 5 lakh yesterday and Rs 2 lakh today. According to the need, currency supply is short," he said.

Unlike urban cities, everyday life in villages is driven by cash. Shopkeepers and farmers have to resort to a system of credit to survive the ongoing crisis.

Ashok Kumar, who owns a fertilizer shop, said, "We deal only in cash. Only if zamindars (landlords) we know come to us we provide (fertilizers) in credit."  However, the farmers who are not-so-known by shop owners have no option but to arrange cash for day-to-day dealings.

Unlike cities, plastic money (debit or credit cards) is of no help in these villages as they don't have necessary facilities to avail these benefits.

Havaldar Raja Ram who doesn't have a credit card said, "Some 2-4 people have credit cards but there are no facilities so we can't use it here." Raja Ram said they need money in hand to survive.
.