A few years ago while investigating the circulation of fake Indian currency notes (FICNs), the Central Bureau of Investigations (CBI), India’s federal crimes investigation agency, discovered that the secret templates used to print currency notes were compromised–the counterfeiters knew exactly about the kind of special ink, paper and other ingredients which go into the making of currency notes. This is one way to erode faith in a currency. The other is an indirect intervention to ensure that it becomes worth-less.
What are some of the impacts
Sanjiv Malhotra – an Indian exporter, had to cancel his trip last month. Most of his orders are on hold. Compared to 16 crore last year, his Company hasn’t been able to clock more than Rs 6 crore worth of business this year. Public sector banks are not entertaining the LCs. All this because of the worst ever currency crisis in more than two decades, he says. Anshul Rastogi hoped to join a US university. His dreams are shattered. His family cannot afford to pay the fees of the foreign universities in dollars. The 17 year-old may now do a BA India and go for post-graduation abroad, if and when the rupee improves.
Indians were among the most frequent globetrotters for a variety of reasons from business, honeymoons, studies, pilgrimages or sightseeing to Singapore, Malaysia, Thailand, Australia, Europe, Far-East or Dubai every year. Indians were to account for 50 million outbound tourists by 2020 and had earned the reputation of being the highest spenders. All this will have to wait. Three-day wedding of British billionaire Pramod Agarwal’s daughter in Venice cost $27 million in 2011. Since then a number of wedding planners had cropped up offering to organize big ticket Indian weddings in exotic locations like Bali or Cayman Islands with 400- 450 guests in tow. Most such weddings are as good as a thing of the past.