Banks opened to heavy rush on Thursday as customers carrying currency notes of Rs. 500 and Rs. 1,000 denomination queued up to exchange them for new notes. December 30 is the deadline for exchanging invalid currency notes.
With ATMs shut, it was a scramble for new notes at most private and public sector banks. A senior official with a nationalised bank said there was a huge demand for lower denomination notes. There were people who were keen to get rid of the currency notes, said the official.
Many banks were given police protection and patrolling units in the vicinity were asked to be extra vigilant.
Muthulakshmi, a resident of Vazhaikulam, who had come with her father, said: “We found it difficult to buy the essentials for our home without Rs. 100 notes. Hence, we came as early as possible to the bank to exchange the notes. I had to wait for nearly an hour to get the money exchanged. The banks should open more counters for exchange.”
Arpana, a German national, rushed to the ICICI Bank on Mission Street to stand in the serpentine queue. “I live in the ashram and the announcement came as a surprise. I believe in the government’s decision. I have come to get the money exchanged for daily expenses,” she said.
Most nationalised banks had opened special counters for exchange of notes. Bank employees exchanged the notes only on verifying the photocopies of Aadhaar and PAN card of customers.
Mohammed Musadicq, a vendor in Goubert Market, said the business had almost come to a standstill. “In the past two days, the number of customers coming to the market has come down drastically. “When a customer comes with Rs. 2,000 note and buys products only for Rs 250, where will I give him change. We hope the business will stabilise only when the new Rs. 500 denominations are issued. It might take another couple of days,” he said K.A. Shenbakarajan, president of Chambre de Commerce, pointed out that in the last two days, business houses had faced a huge loss. “We transact up to Rs. 600 crore a day. It has now reduced by 50 per cent. Only those businesses that conduct transaction in bulk were worst affected. “The banks have started issuing currency in exchange of Rs. 500 and Rs. 1,000 denomination. We hope that the business will stabilise in a couple days,” he said.
