After the occurrence of this phenomenon, traders of agricultural produce purchased crops from farmers by issuing cheques to farmers. Farmers without bank accounts were made to open bank accounts and could get access to food, seeds, fertilizers, tools, and other services only when the banks' registration processes were complete and had enough cash to dispense. Some farmers used barter exchange to get food supplies while some with smartphones and bank accounts used e-wallets for obtaining services. What was this phenomenon and explain its features in the context of the case.
After the occurrence of this phenomenon, traders of agricultural produce purchased crops from farmers by issuing cheques to farmers. Farmers without bank accounts were made to open bank accounts and could get access to food, seeds, fertilizers, tools, and other services only when the banks' registration processes were complete and had enough cash to dispense. Some farmers used barter exchange to get food supplies while some with smartphones and bank accounts used e-wallets for obtaining services. What was this phenomenon and explain its features in the context of the case.
The phenomenon was demonetisation is an act of stripping or cancelling legal tender status of a currency unit in circulation Rs 500 and Rs 1000 notes were pulled and replaced with new notes of Rs and introduction of Rs 2000 notes. Features of demonetisationin the context of the case are as follows :
(i) Traders issuing cheques that the transactions were legitimate and recorded as income and expenses.
(ii) Farmers without bank accounts or modern means of transactions faced difficulties in availing basic necessities food, agricultural tools, seeds, fertilizers, etc, and they resorted to barter system creating confusion and chaos.
(iii) Farmers with smartphones and bank accounts made cashless transactions so that they could get easy access to goods/services digitally.
(iv) Banks did not have any cash to distribute to farmers creating a shortage of cash.
The phenomenon was demonetisation is an act of stripping or cancelling legal tender status of a currency unit in circulation Rs 500 and Rs 1000 notes were pulled and replaced with new notes of Rs and introduction of Rs 2000 notes. Features of demonetisationin the context of the case are as follows :
(i) Traders issuing cheques that the transactions were legitimate and recorded as income and expenses.
(ii) Farmers without bank accounts or modern means of transactions faced difficulties in availing basic necessities food, agricultural tools, seeds, fertilizers, etc, and they resorted to barter system creating confusion and chaos.
(iii) Farmers with smartphones and bank accounts made cashless transactions so that they could get easy access to goods/services digitally.
(iv) Banks did not have any cash to distribute to farmers creating a shortage of cash.
