Demonetisation Anniversary: From chaos to crisis, 2016 notebandi traces colonial footsteps; here's how

November 8, 2016, marks the day that many of us still find difficult to revisit. That evening, at 8 pm, Prime Minister Narendra Modi made a thunderous announcement that sent shockwaves across the country. The entire country remained glued to their television screens when the PM declared the sudden demonetisation of Rs 500 and Rs 1000 banknotes—two of India's most commonly used currency denominations. The decision was made to curb black money and counterfeit currency; despite this, it will be a moment that is etched in history that still evokes strong emotions.?

Altering the lives of millions overnight and before one could fully grasp the magnitude of the announcement, the Rs 500 and Rs 1000 notes, which accounted for 86% of the total currency in circulation became invalid. In the blink of an eye, those notes became worthless pieces of paper. But did you know that this is not the first time in the history of India that such a decision has been made: demonetisation has colonial precedence!?

Demonetisation and colonial roots – echoes of 1946?

If we go back to history, in 1946 when the world just came out of the Second World War and India was struggling through the anti-colonial era, the British Raj announced its version of demonetisation. The demonetisation in 1946 had a similar aim as of 2016 which was to curb the black marketeers.?

During that era, black marketeering turned out to be a major outcome of the Second World War and the repercussions led to famine in Bengal. The condition of India was not pleasant during that period as several illegal and unregulated practices were being conducted, from the illegal sale of basic items such as food and clothing rather than luxury products.?

Unseen Parallels of the 2016 Demonetisation and 1946?

In 2016, as soon as the news spread, confusion and uncertainty gripped the country, long queues at the banks and ATMs became a usual scenario. A big chunk of the population criticised and questioned the step which led to heated debates that continued for years, while some hailed the bold move.

Public reactions during the demonetisation in 1946 and 2016?

A report of the Scroll noted that there were mixed reactions to demonetisation in 1946 which was quite similar to 2016. A major part of the population was sceptical of the decision but it significantly impacted the small saving holders. The middle-class category experienced the toughest time.?

1946: Rs 500, Rs 1000, and Rs 10,000 notes demonetised?

Citing World War II and rapidly rising black market operations, the British government in consultation with then RBI governor Chintaman Dwarakanath Deshmukh decided to make Rs 500 and above denominations invalid. In a similar incident, the 2016 demonetisation also made Rs 500 and Rs 1,000 notes illegal. And consecutively, the government and the RBI decided to issue the new Rs 500 and Rs 2000 notes.?

From long queues to heart attacks, both demonetisation episodes have a lot in common?

Regular death cases started making headlines just after the day of demonetisation in 2016. Citing some cases, we revisit the case of a young man in Kanpur who received a Rs 70 lakh payment in Rs 500 and Rs 1000 notes on November 7 for selling a plot of land.?

On November 8, after the demonetisation announcement, the man died due to a major cardiac arrest. Similar incidents took place back in 1946, seventy years ago, on January 12, 1946, a 40-year-old woman died of heart failure in Karachi, which was then a commercial hub of British India. The women saved about Rs 10 lakh in 1,000-rupee notes; those were banned after a few days.The impact of both events continues to shape public discourse, making them hard to revisit without grappling with their lasting effects.?

How was your life impacted when demonetisation was announced in 2016? Let us know in the Comments section below.??