On Wednesday morning, although the skies were bright and they had a fistful of notes, consumers in many cities felt the severe impact of the currency move. Even exempted services like petrol pumps and hospitals refused to accept the Rs. 500 and Rs. 1,000 notes in some places. Yet, there was the warmth of altruism elsewhere.
A Hyderabad family reached a shop to buy the bride’s wedding bangles at 9 p.m. on Tuesday, shortly after the announcement. The price was Rs. 50 a set but they were shocked that their Rs. 1000 note was not accepted. The woman was about to remove the bangles when the shop owner asked her to keep them — for free. “Black bangles are sentimental and I didn’t want to hurt her,” says Muhammad Shaqir in the Laad Bazaar market.
‘Hawala’ operators in Bengaluru swung into action, offering to ‘convert’ large sums for panicked traders. Police sources said one person collected over Rs. 10 crore overnight, but got scared and shut operations by Wednesday morning.
Hawala involved a commission of 30 per cent, and a deferred return of money in new currency notes after two months.
Guests at weddings in Hassan, Karnataka turned generous, gifting Rs. 500 and Rs. 1,000 notes. “Whatever I have collected are only these,” said a woman managing the wedding of Anushree and Raghavendra, from Dudda. But parents conducting weddings were a harried lot, as they could not pay for last-minute expenses.
In the famous Charminar area of Hyderabad, a family pooled in money for lunch at Farasha café on Wednesday and realised they had only about Rs. 350. “We told them that they could eat in the restaurant and pay in Rs. 500 or Rs. 1000 notes if they had a bill amount that could be rounded off,” says cafe owner Syed Muhammad.
In Telangana’s capital, the bustling wholesale trade like Begumbazaar, the Charminar area that normally draws droves of tourists, and Irani cafes famous for biryani were deserted.
“I have this five hundred rupee bundle but it is useless. The government should have thought through this move,” said Bandre, an accountant in the Government Press, Nagpur visiting the city.
Mohan Lal, who heads the Pot Market Jewellery Traders Association welcomed the decision. “The move is good. It is like surgery - necessary but painful - and the end results will be worth it.”
A Delhi man with life savings of Rs 6,000, but no bank account or identity proof had to borrow Rs.200 from his employer to buy groceries. “I have already spent Rs. 120 from that and don’t know what to do next. Even my neighbours are unwilling to lend without commission, said Mahesh Kumar, a labourer in Uttam Nagar.
30 per cent commission
Some of Bengaluru’s street vendors turned currency exchange dealers charging a commission of 30 per cent. A tender coconut vendor offered to accept a Rs. 500 note discounting Rs. 200 in East Bengaluru. In Chickpet, shopkeepers openly traded in currency notes, offering competitive ‘rates’.
Residents of Bengaluru struggled to make payments as government offices stopped accepting Rs. 500 and Rs. 1,000 notes. Bangalore One consumer service centres accepted payments only by card, cheque or demand draft. Cash in any denomination was refused. Bangalore Water Supply and Sewerage Board offices halted all transactions.
Electricity bills could be paid in Rs. 100 notes or using other instruments. Property transactions dropped sharply, and over half the sub-registrar offices registered no transaction. RTO offices also rejected old notes. Transport corporations BMTC and KSRTC were open to high value currency until they ran out of change, but Namma Metro said no to the notes.
Bengaluru’s three toll roads witnessed clogging, as travellers tried to use their Rs. 500 notes at the booths, arguing with the staff. The money was not accepted initially until a National Highways Authority of India statement came, but the problem was ended when Union Transport Minister Nitin Gadkari said all toll collection stood suspended till November 11 midnight.
In Kolkata, sex workers faced the problem of having to manage their cash, said Bharati Dey, secretary, Durbar Mahila Samanwaya Committee.
