THE HINDU Editorial Vocabulary- November 15, 2016- Topic 1
The long, anxious, and frustrating wait
by people outside banks and ATMs across the country over the last five days is
an inevitable consequence of the decision to demonetise notes of Rs.500 and Rs.1,000. When 86 per cent of
the value of notes in circulation turns suddenly invalid, as it did with Prime
Minister Modi’s ‘surgical strike’ last week, a certain degree of disruption and
pain is unavoidable. But the question is whether this chaos could have been anticipated and managed better than it has been.
Replacement of the demonetised notes is a time-consuming exercise that requires
planning of the highest order. The experience of the last few days shows that
preparation was lacking and the transition could have been handled much better.
ATMs are running out of cash quickly while banks are dispensing more of the
Rs.2,000 notes than those of lower denominations. What use is a high-value note
if there is not enough smaller currency to make an exchange? Of course, it was
never an easy task for the Reserve Bank of India and the Centre to strike the
right balance between secrecy and storing adequate quantity of notes for quick
distribution. All the same, there are at least a couple of issues that could
have been addressed differently.
The new Rs.500 notes that hit the market
on Monday could have been released immediately after the announcement last
week. Putting out new Rs.500 notes along the Rs.2,000 notes would have placed
much less strain on those of the Rs.100 denomination, which are anyway in short
supply. Second, it appears that officials woke up a little late to the issue of
recalibrating ATMs. At least a day, if not more, was lost as banks realised the
ATMs would not be able to dispense the new notes. The communication with the
public, who were in a state of panic, could have been better, too. Thankfully,
the Centre has woken up to ease the pressure on the system by increasing
withdrawal limits, allowing for petroleum outlets and hospitals to accept the
old series of notes until November 24 and pushing more cash through post
offices. The worst-affected are people in rural areas and villages where cash
is king and the banking system’s penetration is poor. The decision to relax
cash-holding limits for banking correspondents, the crucial link between banks
and villages, to Rs.50,000 and allowing them to replenish multiple times a day
should help in faster distribution. This ought to have been done much earlier.
The cash crunch of the last few days is certain to have an adverse impact on
consumption spending, especially in the rural areas, with the resultant effect
on the economy in the third quarter.
Vocabulary
Anxious: wanting something very much, typically with a feeling of unease.
Example: The company was anxious to avoid any trouble
Synonyms: eager, keen, desirous, impatient
Inevitable: certain to happen; unavoidable.
Example: War was inevitable
Synonyms: unavoidable, inescapable, inexorable, ineluctable, assured, certain
Disruption: disturbance or problems that interrupt an event, activity, or process.
Example: The schedule was planned to minimize disruption
Secrecy: the action of keeping something secret or the state of being kept secret.
Example: The bidding is conducted in secrecy
Synonyms: confidentiality,
secretiveness, covertness, furtiveness
Strain: A force tending to pull or stretch something to an extreme
or damaging degree.
Example: The usual type of chair puts an enormous strain on the spine
Synonyms: tension, tightness, tautness
Recalibrating: calibrate (something) again or differently.
Example: The sensors had to be recalibrated
Replenish: fill (something) up again.
Example: He replenished Justin's glass with mineral water
Synonyms: refill, top
up, fill up, recharge, freshen