The currency is expected to be less disruptive than 2016 to demonetise 86% of the country\u2019s currency in circulation
\nMUMBAI
\nIndians are stepping up purchases of daily essentials, and even premium branded goods, using the soon-to-be-withdrawn 2,000-rupee ($24.46) notes as they aim to sidestep the need to exchange or deposit them at banks.
\nThe Indian central bank announced on Friday the country\u2019s largest denomination note will be withdrawn from circulation by the end of September. While it did not specify the reason for the move, it comes ahead of state and general elections in the country when, analysts said, cash usage typically spikes, often in unaccounted deals.
\nThe currency exchange is expected to be far less disruptive than a 2016 move to demonetise 86% of the country\u2019s currency in circulation overnight.
\nSince the weekend, people have thronged outlets to spend using the 2000-rupee note to avoid the hassle of queuing up at banks to exchange them or invite scrutiny from the tax department by depositing large sums.
\nIndian shops, for their part, eagerly accepted the note, using it as an opportunity to increase sales, several of them said on Tuesday, the first day the exchange was allowed.
\n\u201cA lot of people are using 2,000-rupee notes to pay for mangoes since Saturday,\u201d said Mohammad Azhar, 30, a mango seller near the Crawford Market area in India\u2019s financial capital of Mumbai.
\n\u201cOn a daily basis, I get 8-10 notes now. I accept it. I have no option, it\u2019s my business. I will deposit everything at once before Sept. 30. There is no fear since the note is valid.\u201d Michael Martis, store manager at a Rado store in a mall in central Mumbai, said his store had seen a 60%-70% increase in 2000-rupee notes since the withdrawal was announced. \u201cThat has increased our watch sales to 3-4 pieces per day from 1-2 previously,\u201d said Martis.
\nFood delivery firm Zomato (ZOMT.NS) said on its Twitter account on Monday that 72% of the \u201ccash on delivery\u201d orders were paid in 2,000-rupee notes since Friday. However, the company spokesperson clarified in response to a query seeking details that the tweet was in made jest and was not factual. The company refused to provide actual numbers.
\nNot all shop-owners were keen to accept the notes.
\n\u201cI don\u2019t accept; I won\u2019t accept. I don\u2019t want to get into the trouble of depositing it with my bank,\u201d said a restaurant owner in South Mumbai. Unlike in 2016, when customers rushed to banks to exchange the scrapped currency notes, bank branches in Mumbai and New Delhi were mostly quiet with a handful of people standing in queues.
\nMaximum crowds were seen at counters of India\u2019s largest lender, State Bank of India (SBI.NS), as the bank chose not to ask for any documentation for exchange of up to the maximum allowed 20,000 rupees at one time.<\/p>\n","protected":false},"excerpt":{"rendered":"
The currency is expected to be less disruptive than 2016 to demonetise 86% of the country\u2019s currency in circulation MUMBAI Indians are stepping up purchases of daily essentials, and even premium branded goods, using the soon-to-be-withdrawn 2,000-rupee ($24.46) notes as they aim to sidestep the need to exchange or deposit them at banks. The Indian […]<\/p>\n","protected":false},"author":2,"featured_media":333364,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-333334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n