Forced austerity

Ever since the November 8 demonetisation announcement by Prime Minister Narendra Modi, the average Indian who falls back on hard cash for his day-to-day expenses, has switched to austerity measures. From turning to their children’s piggy banks to cutting down on consumption of non-vegetarian food, here is how Chennaiites have coped with the change. 

For the past two weeks, Janet Vijayakumar, a homemaker, has turned into a vegetarian. Hers was a household that predominantly ate meat, but that changed completely after Modi announced the withdrawal of Rs 500 and Rs 1,000 notes from circulation with immediate effect on November 8. “We are used to buying fresh meat every other day and soon after the announcement, it became hard to buy them routinely, as meat stalls operate on cash basis. We decided to switch to a vegetarian diet, since it is easier to buy vegetables from the supermarket using cards,” she says. Although supermarkets accept cards, the minimum ceiling for card payments is forcing them to make unnecessary purchases, she adds. “I end up buying more, though most often I only need a packet of milk,” she says. 

M Ahmed, a businessman understood the essence of the above adage, only after demonetisation. He and his family of seven had to dip into the amount they had set aside for charitable causes. 

“The first few days after demonetisation were the toughest. We had exhausted all the available cash and we had also tapped into the most unimaginable sources. There is a box where we put in coins and Rs 10 notes, which is earmarked for charity. But the lack of cash in hand meant that we were forced to use that money. The priority, after we could withdraw some money, was to replenish that amount,” he says. 

And for some, demonetisation has also meant moving away from hard cash altogether. “I’ve stopped using hard cash altogether. It’s all virtual now. And yes, I am very conscious of how and where I spend money. Hard cash is well protected and kept safe for maybe an emergency like a medical expense. Just for those occasions when a card not work,” explains Smitha Menon, 36, a parent and working professional. 

With the ATM’s running out of cash and long queues at the banks, an alternate ‘micro economy’ has sprung up across various households. Many youngsters are “cashing” in, doing chores online for the older generation and pocketing the cash, to skip the queues. Sania R, a city-based marketing professional, recalled that she topped up her mother’s number online but took the cash for her daily expenses. “I had run out of cash and I couldn’t find an ATM on Sunday to withdraw money. Luckily, my mother wanted her top-up done, which she usually does in person through the kirana shop. I volunteered to do the top-up online and took the cash from her, skipping the queues,” she says. 

Sunaina A, a software professional, said that this strategy helped her many times during the cash crunch. “My mother-in-law always carries cash and doesn’t really do too many e-transactions. After demonetisation, I pay her bills online and she reimburses in cash, which has been a boon as I too had to run my household. This was a win-win situation for all,” she says with a grin. 

My family has turned vegetarian. In our house we are predominantly meat-eaters, but that changed completely after Modi announced the withdrawal of Rs 500 and Rs 1,000 notes from circulation with immediate effect on November 8. We are used to buying fresh meat every other day and soon after the announcement, it became hard to buy non-veg routinely, as meat stalls operate on a cash basis. We decided to switch to a vegetarian diet, since we can buy vegetables from the supermarket using cards. Although supermarkets accept cards, the minimum ceiling for card payments is forcing us to make unnecessary purchases. I end up buying more groceries, though most often I only need a packet of milk — Janet Vijayakumar, homemaker

My piggy bank came to my rescue. I used to keep putting a couple of hundreds into it whenever I find some loose change. All those savings have helped me and my parents, this time. During the recent semester break, I had planned to travel, but had to dump all my holiday plans. I just stayed indoors all through the holidays and I had to forego all my shopping plans at malls, just to avoid the unnecessary expenditure — Subiksha Sridhar, college student

I went about scouring my jeans and pant pockets to see if there was change anywhere. I have continued saving some money now and then in a small box, since my childhood. These savings have been my only resort. Now, I watch every rupee I spend. I buy something only if it is absolutely necessary. Otherwise, I defer the purchases — Seema Varadarajan, Sr legal executive