On a sunny evening in Chembur this week, post a robust tai chi session, a group of 30 senior citizens sat down for some chai masti at a social recreation event organised by Dignity Foundation.
The group talked about a favourite senior citizen subject: pension. Soon, the conversation shifted to how demonetisation has impacted it, and them too. Pension money was easy enough to retrieve, and designated queues at banks meant they were even able to withdraw the new currency notes.
Often, long lines and shortage of cash at banks posed problems, which led to questions on why the government could not provide banks with enough cash. “If they were going to issue a new currency note, could they not ensure that [ATM] machines were equipped to operate them?” asked G. R. Mahajan (65). Many members of the group remarked that they were only able to withdraw Rs. 2,000 notes in the initial days, since Rs. 500 notes were not available at banks. “We had Rs. 2,000 notes, but that made it very difficult to buy items we needed: nobody had change for that amount,” said M. Subramanian (77). While the complaints about the shortage of cash were doing the rounds, Madan Nariani (72) asks, “Which one of us does not have a debit card?” All the senior citizens said they had debit cards. “I’m telling you, there is nothing on this planet that you cannot buy with a debit card,” said another gentleman who has been buying vegetables and groceries from Sahakari Bhandars and an online provisions store. “These are very convenient, I am telling you,” he emphasised.
The tenor of the meeting suddenly changed; now, it was a session on digital transactions, as he began to address other members who were not as comfortable with the Internet, or even using the computer. Rekha Jauri, 71, said “There are some things for which only cash works. Like, paying bais (domestic help) or bhajiwalas (vegetable vendors) – how do we do that? Many of them also want change; how do we give them change?” She also confessed to feeling overwhelmed by digital methods. “I think many of us suffer from illiteracy in digitisation,” she said.
Another solution many have devised for daily payments, in the absence of comfortable non-cash solutions, is to informally maintain accounts with shopkeepers of neighbourhood provision stores, to buy items on credit. This has proved to be a blessing as they are able to stock up on essentials without worrying about payment. “Sometimes, these store managers also collect old notes from us,” they said.
For retirees who depend on their children for financial assistance, receiving money has been difficult. It is easier for those who are independent, thanks to pensions and dividends from shares. One such retired person Jayashree D'Souza (80), said, “I went to the bank on the fifth day after demonetisation, instead of the first. So, I was only able to collect my Rs. 10,000 in Rs. 2,000 notes as they had run out of other denominations.”
Another member of the group has a mother-in-law aged 80. She too got her pension amount of Rs. 24,000 in Rs. 2,000 notes.
How have things changed after November 8? The immediate answer is change in spending habits. “We spend less now; we are more conscious, and only spend on what we need,” said Mr. Naraini. One example: if earlier they used to buy five or six fruits in the evening, they now only buy one. “I know it seems small, but this is just the way change happens.”
“If you are writing this article,” said M. S. Pillai (70) , “please mention that despite the small inconvenience, we think it is a good move.” While long-term impacts remain to be assessed, as of now, change in payment modes, cash habits and spending trends are immediate areas of impact. There is reason to be optimistic, and not title this article, as one member suggested, ‘Senior citizens’ woes on demonetisation’.
