Demonetisation in Hindsight: Yet Another Uncertainty Crisis and a Financial Pandemic

Abstract

On 8th November, 2016 the honourable Prime Minister of India announced the decision to demonetise the Indian currency. Sudden announcement of demonetisation not only impacted the Indian economy remarkably but resulted in heightened feelings of confusion, insecurity and loss of control among people. Aim: The aim of this paper was to examine the psychosocial impacts of demonetisation in India. Sample: Equal number of men (n=30) and women (n=30) participated in the study. Non probability convenience sampling was used to include participants from rural and urban regions of the country. Method: In depth semi-structured interviews were conducted. Findings: The findings of this study demonstrated that the economic turmoil created due to the abrupt demonetisation decision in the country had enormous impact on the daily lives of people. It not only impacted the economic dimensions by causing disturbances in house budgets but also impacted the psychosocial wellbeing of the participants. Feelings of uncertainty fear, disappointment and stress were reported by most of the participants. Self esteem of women suffered while social support acted as a protective factor. Hence, this study is one of the few that assesses the economic and psychosocial impacts of demonetisation in India, emphasizing the differential impact on urban and rural regions. Implications: Understanding the psychosocial implications of drastic decisions may help in future policy formulation while considering the mental health of the target group. It provides a road map of how uncertainty crisis impacts the wellbeing of individuals which may help in better disaster management response given the similar trajectory of perceptions in natural or man made uncertainties.