Mehsana, Gujarat – Long queues reminiscent of the demonetization period have been observed outside an Urban Cooperative Bank in Mehsana, Gujarat. However, the reason behind these queues is not related to any new demonetization policy. Instead, citizens are lining up to obtain bundles of new ₹10 notes.

On November 8, 2016, the Indian government announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The stated goals were to curb the shadow economy, increase cashless transactions, and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism. The announcement led to significant disruption throughout the economy, with people standing in lengthy queues to exchange their old banknotes for new ones.

While the current situation in Mehsana evokes memories of the 2016 demonetization, the context is entirely different. People are voluntarily queuing to acquire ₹10 notes, not to exchange old currency rendered invalid.

Urban Cooperative Banks (UCBs) play a significant role in the financial landscape of Gujarat, particularly in serving the needs of local communities. These banks are popular among certain segments of the population who prefer dealing in cash for their daily transactions. The demand for new ₹10 notes at the Mehsana Urban Cooperative Bank suggests a preference among some customers for fresh currency, possibly for auspicious purposes, festive occasions, or simply for the sake of having clean, new notes.

The scenes outside the bank have drawn considerable attention, with images circulating on social media platforms. These images have sparked curiosity and, for some, brought back memories of the chaotic days following the 2016 demonetization. However, it is crucial to distinguish between the two situations. The current queues in Mehsana are driven by voluntary demand for new currency, whereas the demonetization queues were a result of a mandatory exchange of old currency.

It remains unclear why there is such a high demand for ₹10 notes at this particular bank. However, it highlights the diverse financial practices and preferences that exist within different communities in India. While digital transactions are on the rise, cash still plays a vital role in the economy, especially for small businesses and daily wage earners.