Demonetization has affected everyone. People from all sector; urban to rural. It has affected many people and business and day-to-day transaction of the country. Largely the business community has been affected greatly. People have temporarily lost buying capacity. After the declaration of the prime minister on 8th Novemeber, ATMs and banks were closed for 2 days to vacate the old notes and filled new notes. Startling reports are coming all around the country regarding it. Somewhere marriages have been postponed. Some have postponed their travel etc.
We visited few villages, to learn about the situation. In villages generally people knows each other very well. They share a relation with everyone like uncle, aunty, brother, sister etc. irrespective of caste and community. In villages generally people know others status very well. Usually the village folks transact all months by credit from all the shops and necessary places. And they payoff when they get the money. The shopkeepers or the person who is selling or lending credit know the reputation and credibility of the loaner. So the shopkeeper or lender advances loan and credit accordingly.
The same system prevails in while the shopkeeper purchases groceries or things from his wholesaler. The wholesaler also gives credit to the retailer as they are doing regular business. And the chain of the system goes on.
In villages people are normally doing their work, going to the field and works. Normally arranging family functions and celebrating festivals.
It is true, cash flow is checked. But not created any big hurdles. We can say it is normal.
