Page 515 - SSB Interview: The Complete Guide, Second Edition

d. Due to the spurt in demand, initial exchange was restricted to
`4000 per day. So was the withdrawal from accounts.

e. On humanitarian grounds, hospitals, medicine shops and railway
stations were allowed to accept the old tender.

f. People were allowed to deposit the money into their accounts but

with PAN card details and in their own names.

4. Consequent Results

Apart from the envisaged objectives of this exercise, a lot of actions by
the public took the Government by surprise. These are:

a. People converted a lot of old unaccounted notes through
permissible outlets, namely:

Pharmaceutical shops
Rail reservation counters by making bogus reservations and

cancelling them to regain legal tender

Jewellers were flooded with backdated purchases for huge

amounts of jewellery to regularise the large amounts of

unaccounted demonetised currency.

b. A large number of senior public sector bank officials compromised
institutional integrity and their own conscience to illegitimately

convert large amounts of the currency of vested parties for personal
pecuniary gains.

5. The demonetisation exercise suffered from some intrinsic flaws that
took away the sheen from the desired impact. These are:

a. The quantum of notes printed was restricted initially to maintain

surprise and the subsequent rate of printing could not match the
demand.

b. The Automated Teller Machines (ATMs) were not calibrated for
the new 2000 rupee and 500 rupee notes. Hence, they could