The demonetisation of high value currency notes has not impacted the day-to-day life in Kashmir Valley, which is struggling to come out of the four months long shutdown triggered by protests over killing of a militant leader in July. The ATMs have not witnessed long queues nor the bank employees have encountered unmanageable rush of people eager to exchange or deposit the cancelled notes.
Experts say that Kashmiri people have tendency to avoid accumulation of currency notes at their residences due to the fragile security situation. “Since the onset of militancy in Kashmir in early 1990s, people have begun to deposit money in banks. Those who are not inclined to bank depositions invest in small business or real estate,” said Bashir Ahmad, a commerce teacher.
The demonetisation has taken place at a time when the normal life in Kashmir was out of gear for four months. “There was less flow of money in the market. People were drawing small amounts to sustain daily life. This is one of the major reasons that Kashmir remained indifferent to din of the demonetisation,” Ahmad said.
“In comparison to the rest of the country, the demonetisation has been taken well by the people in Kashmir,” said Prof Nisar Ali, noted economist and former dean of Kashmir University said. “The people in Kashmir traditionally keep money deposited in the bank accounts,” he said.
Khurshid Ahmad, an employee of Jammu and Kashmir bank, the lone listed company of J&K said that ATMs were filled with cash from day one but no mad rush was witnessed.
Shakil Qalandar, a prominent businessman and former president of Kashmir Chamber of Commerce and Industry said that J&K is economically backward state and people largely depend on bank loans for business and trade activity. He said the current turmoil also changed the way of depositing and transacting money.
Qalandar said that the demonetization evaporated the myth that Kashmir was the hub of black money and hawala transactions. “If that was the case then Kashmiris would have been the most worried lot on demonetization,” he said.
However, a senior police officer told The Pioneer that they have seized fake currency notes and drugs from infiltrators on the loC. “This (fake currency) has been an issue with the security agencies to deal with. We hope the demonetisation would check the menace. We are also keeping a tab on the transactions. Maybe in near future, unscrupulous elements may surface,” he said.