New schemes to reduce demonetisation pains
Prime Minister Narendra Modi's address to the nation on December 31, which marked the end of 2016 and also the 50-day deadline to exchange high-value currency notes at banks, may not have been as explosive as the November 8 announcement, but various schemes unveiled by the Prime Minister will significantly impact the marginalised and weaker sections of society. The Prime Minister's kitty had a number of incentives for the populace — the poor, underprivileged, women, senior citizens and small businesses too. As the nation eagerly kept waiting for his address, with some expecting a cash bonanza, others anticipated another big bang decision — dreams and hopes of both were shattered as the Prime Minister neither offered freebies nor did he make any earth-shaking policy decision. Instead, he began his speech on a sedate note, by saluting the people for enduring the hardship of demonetisation. At the very outset, he acknowledged that demonetisation had had a cascading impact on the economy as well as on the citizens of the country. But, he said, “People will have to bear with small-term pain for long-term gain.” This set the tone for what was to be unravelled. And gradually, he announced a host of sops for the poor and the marginalised.
In a bonanza package for the farming community, the Prime Minister said that for 60 days, his Government would bear the interest on crop loans from district cooperative banks and primary societies for sowing operations this Rabi season. Additionally, he said that the Government would add Rs 200 billion rupees to the Rs 210 billion fund created by the National Bank for Agricultural and Rural Development in November 2016. He also promised to issue RuPay debit cards within three months to 30 million farmers who have kisan credit cards. For the rural people, the Prime Minister announced a three per cent interest subvention for loans up to two lakh rupees. Next, in a bid to address the plight of pregnant women, and also to support institutional deliveries to reduce maternal and infant mortality rate, he announced the pan-India application of the Indira Gandhi Matritva Sahyog Yojana, which was until now a pilot project practised across 53 districts of the country. Financial aid under this scheme has also been increased from Rs 4,000 to Rs 6,000, which will be provided in three installments. For small and medium industries, who were the immediate sufferers of demonetisation due to a decline in business, the Prime Minister unveiled a slew of concessions. He raised credit guarantee for them. There is no doubt that these schemes will assuage the feelings of many who were inconvenienced by demonetisation. They was also keeping in mind the forthcoming elections. Nevertheless, they need to be commended on the basis of merit. Demonetisation is a lengthy process which will play out gradually. People of the country now await the long-term benefits of this move.