Economy & FinanceHealthSocial Issues
Demonetisation and the health costs of cash shortages in India
A research study highlights the severe economic and health consequences of currency withdrawal following demonetisation on November 8, 2016, where 86% of India's currency by value was demonetised. While 99.3% of withdrawn notes returned to the banking system according to the RBI, cash shortages led to increased health costs and difficulties in accessing essential healthcare, particularly in rural and lower-income regions. The findings underscore that while the policy aimed to curb black money, its impact on public health highlights the necessity to weigh economic reforms against broader social costs.
Key Points
- Demonetisation led to acute cash shortages which negatively impacted healthcare access and spending.
- People in rural areas and vulnerable sections faced the maximum difficulty in accessing essential healthcare.
- Digital payments increased significantly, but remote and low-income regions suffered from limited access.
- The study emphasizes the need to balance economic reforms with public health considerations.
Exam Facts
- Demonetisation was implemented on November 8, 2016.
- Approximately 86% of India's currency by value was demonetised.
- Nearly 99.3% of the withdrawn notes returned to the banking system according to RBI.
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