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India's Demonetization Drama, Explained

Cash and Banking Woes
Cash and Banking Woes

Things did not go smooth as planned. Soon it became clear that the government and the central bank faced challenges in quickly
distributing new currency across the country.

Banks and ATMs ran dry of cash in a few hours after receiving it. There was also a technical glitch as ATMs had to be emptied of old notes and re-calibrated to dispense new currency, which took some weeks in smaller towns.

The RBI had to repeatedly issue assurances that there was enough cash in stock to meet demand.

The government's push for a cashless society is also facing problems as there are many people without even a bank account. Weak Internet
connectivity in the remote regions and hilly areas and the lack of access to smartphones for the poor are also a hindrance.