Page 57 - Banking Finance July 2023

FEATURES

Rs. 2,000 notes spurned by many retail

outlets, petrol stations

ven as the Reserve Bank of India and the have stopped accepting the notes from customers. Yogesh
E government have said that Rs. 2,000 denomination Gupta, Chairman and Managing Director, told businessline
that "we have asked outlets to avoid taking Rs. 2,000 notes
banknotes continue as legal tender, a large number
of kirana shops, retail outlets, petrol stations, and
transport companies are not accepting the note, leaving following the sudden surge in transactions".
In Hyderabad, corporate hospitals have stopped accepting
thousands of customers in many parts of the country with no
Rs. 2,000 notes for the same reason. A senior official of a
option other than taking their currency to a bank.
major corporate hospital chain said: "We have noticed a
Take the case of Kailas Mandal, a blue collared worker in significant increase in payments in Rs. 2,000 notes. Most of
Matunga area of Mumbai who could not buy medicine for them are partly soiled or old. As there are other options like
his daughter after a local pharmacy refused to take his Rs. exchanging them in banks or depositing in bank accounts,
2,000 note. "That's the only cash I have with me. Now, I'll we are being extra cautious."
have to wait till tomorrow to get the note exchanged at a
The horrifying memories of being straddled with a pile of
bank," he said.
Rs. 500 and Rs. 1,000 notes in the days following
Slightly worried demonetisation seem to be acting as a deterrent for many
A similar story unfolded in Delhi too where neighbourhood shopkeepers. Pratap Majumdar, who runs a kirana shop in
kirana and departmental stores are no longer accepting Rs. South Kolkata, says there has been an increase in the
2,000 notes. number of customers walking into his shop with Rs, 2,000
notes for buying goods worth Rs. 300-500.
Satish Wadhwani, who runs a small departmental store in
Masudpur near Vasant Kunj in South Delhi, said: "We have "Earlier, these customers would insist on online payments;
started refusing to take Rs. 2,000 notes. Exceptions are now, they want me to accept the Rs. 2,000 notes for such
made for old customers. But overall, we are apprehensive low-ticket purchases. If every customer starts doing this, I
about accepting these notes now." will be piled up with a number of notes and it is difficult for
me to go to the bank to deposit it."
About 2,700 km away in Tirunelveli, the Tamil Nadu State
Transport Corporation issued a circular ordering the bus 10% commission
conductors not to accept Rs. 2,000 notes from passengers. In Mumbai, grocery stores are charging a 10 per cent
The Managing Director of the Corporation also demanded commission while the jewellers are selling gold at premium
that conductors should not exchange their collection (coins prices to customers who are presenting Rs. 2,000 notes.
& notes of low monetary value) with outsiders.
However, the extent of the impact wasn't widespread. For
In Kerala, the Guruvayur Temple Administration, which example, business at Jamalpur vegetable APMC market in
manages one of South India's well-known Srikrishna Temple, Ahmedabad was almost unhampered. "Initially, there was
is concerned over the possibility of the notes landing in the some resistance to accept the Rs. 2,000 note. But it has
'hundis' in the temple after the currency loses legal tender been made clear that this note continues to be legal
status. VK Vijayan, Chairman of Guruvayur Devaswom currency," said Ahmed Patel, a trade representative.
Board, told that the temple administration had faced such
In Bengaluru, the impact was minimal as most of the
a situation after the currency ban in 2016.
consumers do not use cash on a day-to-day basis as they
Retail liquor outlets of Kerala's State Beverages Corporation have switched to digital platforms. (Source: BL)

52 | 2023 | JULY | BANKING FINANCE