Entrepreneurs Respond to the Indian Demonetization Crisis

This is a call for entrepreneurs to help respond to crises around the world, using their business acumen, connections, passion, and concern for others. We have a Slack that we use to communicate. This page tells about the current crisis and how to join us.

The Indian Demonitization Crisis

November 20, 2016: There is a crisis going on in India right now. Here is what we know at this moment:

  • In an effort to crack down on corruption and non-payment of taxes, the government of India has told its citizens that their 500 rupee ($7.50) and 1,000 rupee ($15) notes are no longer legal for transactions and must be exchanged by December 30. These account for 86% of notes in circulation.
  • People must change them for new notes, but there is a limit of 2,000 rupees ($30) and a requirement of identification. The rest is supposed to go into bank accounts.
  • Rural banks are known for their corruption. 90% of transactions in India are cash based. Hundreds of millions of honest people do not have bank accounts.
  • The banks do not have smaller notes or new-edition notes for replacement. The treasury has not been able to print enough small and new notes.
  • People can withdraw from bank accounts no more than 24,000 rupees ($360) per week.
  • There has been a run on gold, jewelry, watches, cars, and other luxury items.
  • This has happened twice before. Dozens of deaths have already been directly attributed to this new law.
  • The government has made a few exceptions for some critical cases, but in general people must turn in their money to banks or it will soon be worth nothing. Thousands of small businesses have ground to a halt.

Sources of information: Wikipedia article, BBC, The Diplomat,

A Call for Entrepreneurs

Entrepreneurs who are interested in genuinely responding to this crisis and helping be part of the solution are encouraged to join our slack. We don’t have anyone to build a sign-up form (can you help?), so for now you get your Slack invitation by emailing david@dsiegel.com and asking for it. Please do, and please join us in this important cause to help the Indian people.

Please help publicize this page. It’s at www.entrepreneursrespond.com

This is an organic, self-organizing mission set up by David Siegel. Please take the initiative and lead the way.

Written by

Provocateur, professional heretic, slayer of myths, speaker of truthiness to powerfulness, and defender of the Oxford comma.

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