Cash Rush: Traders Accepting Rs 2000 Notes As Customers Flock To Offload Currency

Despite this, traders are accommodating the high-denomination notes for even small purchases as people rush to offload currency following the surprise withdrawal announcement by the Reserve Bank of India.

Outlook Web Desk

Updated on: 22 May 2023 3:09 pm

RBI Stops Printing Rs 2000 Note, Current Focus On Smaller Denominations, Including Rs 200

Traders in the national capital are witnessing an interesting trend as an influx of customers are flocking to their shops armed with only Rs 2000 currency notes, while UPI payments have seen a decline. Despite this, traders are accommodating these high-denomination notes, even for purchases as low as Rs 100-200, as people rush to offload the currency following the surprise announcement by the Reserve Bank of India (RBI) to withdraw the note from circulation.

In Sarojini Nagar market, a trader expressed astonishment, noting that he had rarely seen Rs 2000 currency notes in recent months, but now it seems that every other person is using this particular denomination for their purchases. While the RBI has granted the public time until September 30 to deposit or exchange these notes at banks, people are eager to part ways with them without delay.

Unlike the overnight demonetisation shock in November 2016 when old Rs 500 and Rs 1000 notes were invalidated, the Rs 2000 currency notes will continue to be legal tender. However, traders have observed a sudden shift in customer behavior. The president of the Sarojini Nagar Mini Market Association, Ashok Randhawa, shared that they have received numerous complaints from traders regarding the surge in cash transactions. Previously, customers predominantly preferred UPI payments, but now there has been a swift transition back to cash.

To mitigate the impact on business, traders have been advised to accept the high-denomination notes, given that many customers are simply shopping to rid themselves of the Rs 2000 notes. Randhawa emphasized that it is futile to insist on UPI payments, as the primary goal for customers is to dispose of their currency. Recent relief came in the form of an announcement by the State Bank of India (SBI), allowing public exchange of Rs 2000 notes up to a limit of Rs 20,000 without the need for a requisition slip.

According to Hindustan Times, The influx of Rs 2000 currency notes has also affected other sectors, such as petrol pumps, where customers have been converging to buy fuel worth as little as Rs 100 or Rs 200. Some pumps have resorted to displaying notices stating their inability to provide change for Rs 2000 notes due to a shortage of smaller denominations. This has led to an upsurge in cash transactions, prompting dealers in various regions to adopt measures like requesting customers to opt for digital payment methods.

(With PTI Inputs)