India's note ban still causing pain one year on

Synopsis

A year after the Government of India implemented a drastic monetary policy, the thriving clothing market in Old Delhi remains affected. The policy, which Fanning eighty-six percent of the country's banknotes overnight, caused a significant disruption in India's cash-based economy. Trade in markets like Old Delhi dried up, leading to job losses and a long recovery process. Initially, many people flocked to banks to exchange their old notes for new ones, but even months later, there were not enough new notes in circulation for daily transactions. Although the government aimed to shift consumer habits towards digital payments, many traders and customers in Old Delhi report that most transactions still rely on cash. The aftermath of this policy continues to impact the local economy, as businesses struggle to regain their footing.