The single row of two-wheelers parked along the narrow path winding down the middle of Broadway on Saturday noon stood testimony to the crisis facing the usually bustling commercial nerve centre of the city over the last few days.
During normal times, the parking lot featured multiple rows of vehicles leaving hardly any space for even pedestrians.
The unprecedented crisis triggered by demonetisation has resulted in a unique phenomenon on Broadway with owners taking direct charge of shops. “My employees are waiting in queues at banks for exchanging currency and before ATMs,” said P.A. Sageer, a textile shop owner and president of Broadway Shop Owners Association (BSOA).
Shop owners vouch that business has dropped by 80 to 90 per cent.
“The restriction on withdrawals means it will take up to six months for proper cash flow and restoration of business to normal levels,” said Mohammed Sageer, an aluminium sheet dealer and general secretary of Kerala Merchants Chamber of Commerce.
Joseph D’Silva, joint secretary of BSOA, has allowed his staff to go on leave considering the steep fall in business at his watch shop. “We don’t deal in cards leaving business near nil,” he said.
Of late, even credit/debit card-based business has proved to be of little help to shops. Either the machines constantly keep on declining transactions or reverse sales.
Credit card
Nabeel, treasurer of BSOA, shared an incident in which one of his staffers accepted credit card payment at his textile shop for a sale worth Rs.2,200 on Friday without realising that the slip generated for the amount had indicated reversal of sale. “The Rs.2000 note is useless in the current scenario where none has change to spare. There will be no change unless new Rs.500 notes enter the market,” he said.
Private financiers
Small-time private financiers who used to help traders in the past have now disappeared from the scene fearing a backlash by enforcement authorities who are making rounds laying traps to snare any such transactions.
Job cuts also seem real. “If there is no quick turnaround, we may have to think of reducing staff,” said Mr. Sageer.
However, P.S. Paul, a stationary shop owner, warned of a long haul running into weeks and months before that turnaround happens. “Maybe the government should think of introducing temporary debit cards of small denominations like mobile recharge coupons,” he said.
