ISSN (Online) - 2349-8846

Shubham KundalSubscribe to RSS - Shubham Kundal

Demonetisation: An Estimation of Losses due to ATM Queuing

We highlight the inconvenience and the consequent losses that the general public has faced due to one factor: difficulty in withdrawing cash from ATMs. Our methodology is based on a widely-used technique—“willingness to pay.” The monetary value of losses thus obtained could be viewed as "cash transaction tax"—an implicit tax that the government has imposed on cash transactions due to the lack of liquidity. This tax can therefore be thought of as the government’s way of incentivising cashless transactions in the country.
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