Notes Ban Like 'Kadak Chai' I Used To Make, Rich Don't Like It: PM Modi

Ghazipur, Uttar Pradesh:

Prime Minister Narendra Modi today invoked his storied past as a tea-seller at a huge rally in Uttar Pradesh ,which votes soon, to compare his shock ban on 500 and 1,000-rupee notes to a kadak or strong cup of tea ,refreshing for the poor but unpalatable for the wealthy.

Yesterday, PM Modi made an evocative appeal for just "50 days" to deplete the economy of black money. Today, in Ghazipur, in north-west Uttar Pradesh, he again asked his audience to "bear with the inconveniences" while the country transitions from the old and now invalid currency to new, security-enhanced 500 and 2,000-rupee notes.

In a sudden televised address last Tuesday, PM Modi declared that at midnight, the old notes could not be used for transactions and must be deposited in banks by the end of the year. Banks would shut down for a day and ATMs for two to gear up for the change, he said.

In the last four days, banks have been over-run with lines of people waiting several hours to collect the new money. ATMs have been on the blink, unable to dispense the new notes, and the Reserve Bank of India today said a special team has been created to help speed up the recalibration of the machines.

Advertisement

"Yes, my decisions are tough, but when I was young, poor people used to tell me, 'Modi-ji chai zara kadak banana (make it a strong cup of tea, please.). The poor, they are used to this, but the rich, they can't digest it," he said.

In response to complaints of people left utterly cashless overnight, the government has introduced a series of quick corrections: the limit for withdrawals from a bank account has been raised from Rs 20,000 to Rs 24,000; petrol pumps and state-run hospitals have been ordered to accept the old notes till November 24; banks were kept open on the weekend.

Advertisement

At PM Modi's rally, local BJP leaders admit that the cash crunch made it challenging to organize today's event. Sanjay Sonkar, who hopes to run for election from a nearby constituency, was assigned by the party to organize 2,000 packed lunches and over 150 vehicles. Mr Sonkar worked his connections to ensure that the payments, adding up to 3 lakhs, can be made in due course. "The halwai (sweets-maker), I have fixed on credit, I will pay him later," he said.

Avdesh Yadav, a bus driver, was hired by BJP workers to bring in 150 people from a village in the area to attend the rally. The 6,000 rupees he is owed will be settled later, but he says he's not worried.  "They have given me money for diesel, the rest I will take later. It's not an issue, they are a big party and I am sure they will pay sooner or later," said the 60-year-old.

Advertisement

In Delhi, the leaders of all major opposition parties met for a discussion on how to target the government for what it describes as a move that is punishing the poor. In Uttar Pradesh, Dalit icon Mayawati, who is campaigning to return as Chief Minister of Uttar Pradesh (she lost the last state election and has served three terms before that), said the PM's public meeting should not be seen as a big draw. "Only about 20 - 25,000 people attended and everyone was paid Rs 250 rupees to go," she alleged.

The PM's crackdown on black money and the removal of the old Rs 500 note is expected to hit campaigning in Uttar Pradesh significantly. Parties make payments in cash and funnel unaccounted-for donations to pay massive bills. With the new notes in limited supply, politicians will have to work overtime to configure new solutions.