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Agence France-Presse

Tens of thousands of people joined nationwide protests yesterday against India’s ban on high-value banknotes, which organisers said had caused a “financial emergency” in a country that operates almost entirely on cash.
India is still reeling from Prime Minister Narendra Modi’s shock decision nearly three weeks ago to pull 86 per cent of the currency from circulation overnight, triggering a chronic shortage of cash.
Many ordinary Indians say they support the scheme if it forces the rich to pay their taxes by making them bank undeclared income, but economists have warned it could hit growth hard.
Around 25,000 people took to the streets of the eastern city of Calcutta, capital of West Bengal state, whose left-wing Chief ­Minister Mamata Banerjee has warned of “riots and epidemics” if the ban continues.

Protester Sumit Sen said he had been forced to close his grocery shop after business slowed to a trickle: “Running my grocery shop became impossible.”
An estimated 6,000 rallied in Mumbai, India’s western commercial hub, police said.
“We are protesting against the undeclared financial emergency imposed by the government and the hardships people across the country are facing because of this illegal decision,” said Manish Tewari of the opposition Congress party. “The decision to demonetise high-value currency was done without any authority and legislation and is clearly illegal.”

Owners of the banned 500 (HK$57) and 1,000 rupee, notes have until the end of the year to deposit them in a bank, and can only directly exchange a small number for new currency.
But authorities have struggled to print enough new notes to meet demand and economists say the ensuing cash crunch will hit growth. Former prime minister Manmohan Singh, a respected economist, said last week it would shave at least 2 percentage points off growth, which topped 7 per cent in the first half of the financial year.

“I do not disagree with the objectives but it is a monumental case of mismanagement,” the Congress party lawmaker told parliament. “The way demonetisation has been implemented, it will hurt agricultural growth and all those people working in the informal sector.”
Over 90 per cent of transactions in India are conducted in cash. Many have been left without enough cash to buy food or daily essentials, while farmers have been unable to buy seeds and small traders say business has fallen off a cliff.
Nonetheless Modi has repeatedly defended the scheme, accusing its detractors of being tax evaders and urged all Indians to switch to non-cash payment methods.


Tens of thousands protest against India’s ‘financial emergency’ after shock cash ban

People gather in central Delhi for a protest against the government's decision to withdraw 500 and 1000 Indian rupee banknotes from circulation, India November 28, 2016. REUTERS/Cathal McNaughton

epa05650628 An Indian man displays a banned 1000- rupee banknote during a protest rally in support of what the protesters call 'Jan Aakrosh Diwas' against the demonetisation, in Bangalore, India, 28 November 2016. Opposition parties including the Congress, Left parties, Samajwadi Party and the Trinamool Congress are observing 'Jan Aakrosh Diwas' protest on Monday to protest against the Centre's demonetisation move. Indian Prime Minister Narendra Modi announced the elimination of the 500 and 1,000 rupee bills at midnight on 08 November, for the purpose of fighting 'black money' (hidden assets) and corruption in the country. The decision sparked protests, while storekeepers complained about dwindling sales because many citizens lack the cash to buy the most basic products, as queues get longer at ATMs and banks. EPA/JAGADEESH NV

epa05650605 Jammu and Kashmir police detain Congress Party workers as they stage a protest against the government, opposing the ban on old high denomination currency notes, Jammu, the winter capital of Kashmir, India, 28 November 2016. The protest was held against what the protesters claim see as 'anti-people policies' of old 500 and 1000 currency notes (7.37 and 14.73 US dollar worth, respectively) invalidity, implimented by Indian Prime Minister Narendra Modi-led government. Indian Prime Minister Narendra Modi announced the elimination of the 500 and 1,000 rupee bills at midnight on 08 November, for the purpose of fighting 'black money' (hidden assets) and corruption in the country. The decision sparked protests, while storekeepers complained about dwindling sales because many citizens lack the cash to buy the most basic products, as queues get longer at ATMs and banks. EPA/JAIPAL SINGH

epa05650614 Congress party workers shout slogans as they stage a protest against the government, opposing the ban on old high denomination currency notes in Jammu, the winter capital of Kashmir, India, 28 November 2016. The protest was held against what the protesters claim see as 'anti-people policies' of old 500 and 1000 currency notes (7.37 and 14.73 US dollar worth, respectively) invalidity, implemented by Indian Prime Minister Narendra Modi-led government. Indian Prime Minister Narendra Modi announced the elimination of the 500 and 1,000 rupee bills at midnight on 08 November, for the purpose of fighting 'black money' (hidden assets) and corruption in the country. The decision sparked protests, while storekeepers complained about dwindling sales because many citizens lack the cash to buy the most basic products, as queues get longer at ATMs and banks. EPA/JAIPAL SINGH

Indian police detain a member of the Communist Party of India during a protest against Indian Prime Minister Narendra Modi and the withdrawal of high-value banknotes from circulation, outside a bank in Chennai on November 28, 2016. Tens of thousands of people turned out November 28, for nationwide protests against India's controversial ban on high-value banknotes, which opposition party organisers say has caused a "financial emergency". / AFP PHOTO / ARUN SANKAR

epa05650554 Protesters shouts slogans against Indian Prime Minister Narendra Modi government, during an opposition parties, including the Congress party workers, rally in support of 'Jan Aakrosh Diwas' and against the denomination, in Bangalore, India, 28 November 2016. Opposition parties, including the Congress, Left parties, Samajwadi Party and the Trinamool Congress, are observing 'Jan Aakrosh Diwas' on Monday to protest against the Centre's denomination move. Indian Prime Minister Narendra Modi announced the elimination of the 500 and 1,000 rupee bills at midnight on 08 November, for the purpose of fighting against 'black money' and corruption in the country. The decision sparked protests, while storekeepers complained about dwindling sales because many citizens lack the cash to buy the most basic products, as queues get longer at ATMs and banks. EPA/JAGADEESH NV

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