Confusion and hardship marked the first day after the Centre, in a surprise move, decided to demonetise Rs. 500 and Rs. 1,000 currency notes. With banks and ATMs remaining closed, most people who did not have enough “stock” of lower denomination notes postponed their purchases. Some bought groceries and vegetables on credit from their local vendors, even as most businesses took a hit.
The sudden announcement caught everyone off-guard: Even as the National Highways Authority of India (NHAI) suspended toll collection, sales of vegetables and jewellery fell, cinemas saw a dip in footfall, and many daily wage labourers did not turn up for work.
Despite government orders that petrol bunks accept 500 and 1,000 rupee notes, many petrol bunks asked customers to fill up fuel for either Rs. 500 or Rs. 1,000, as they could not provide them with change. However, a franchisee of Bharat Petroleum Corporation at West Tambaram in Chennai adopted a token system for repayment of cash. A receipt issued by the fuel station could be utilised for refuelling till November 16, a staff said.
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With the general public and retailers not possessing adequate lower denomination notes, vegetable sales at the Koyambedu wholesale market fell by as much as 50 per cent on Wednesday. With no clarity on accepting the 500 and 1,000 rupee notes, the market saw only 60 per cent of its usual footfall of about one lakh customers a day. Confusion prevailed in the wholesale and retail markets in Madurai, Thoothukudi and Kanniyakumari districts too as a majority of the traders were hesitant to accept the demonetised notes.
Railway tickets
At the Moore Market Complex, where several thousand railway tickets are booked everyday by people travelling to all corners of the country, passengers had to wait for a long time to get change in return for Rs. 500 and Rs. 1,000 notes. “I came at noon. My ticket in sleeper class on a waiting list to Gorakhpur from Chennai Central on Raptisagar has been booked. The fare is Rs. 800 and I gave a Rs. 1,000 note. I have been waiting for more than one hour to get the Rs. 200 balance,” said Sithar Singh.
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Railway staff said that since Wednesday morning, most people who had come to book tickets were giving only Rs. 500 and Rs. 1,000 notes. Notes of smaller denomination that they had with them at the time of opening the counter had been exhausted in less than an hour, and hence, they were finding it difficult to return the balance. As and when they got notes of smaller denomination, they returned them to the waiting passengers, the staff said.
Meanwhile, daily wage labourers decided to skip work till the situation improved, mainly on account of fears of not being paid. Forty-year-old Babu, a daily wage labourer, and his co-workers from Kannagi Nagar and Ezhil Nagar in Chennai were unable to go for work as the employer couldn’t pay them their advance money. “Before work we are paid a sum (of money); but our employer had four Rs. 1,000 notes which nobody was ready to exchange. So, we decided to remain at home. Everything has come to a standstill,” said Babu.
At Coimbatore too, the same situation prevailed. “It is the workers who are apprehensive. Since morning, they have not worked,” added M.V. Loganathan, president of Coimbatore SIDCO Industrial Estate Manufacturers’ Welfare Association.
Kancheepuram witnessed a bandh-like situation with many silk-saree showrooms seeing very low turnout of customers despite Wednesday being a ‘muhurtham’ day. Some shops put up notice boards stating they would accept 500 and 1,000 rupees notes provided they customers bought goods for the entire amount.
In Kanniyakumari, many tourists who did not carry adequate cash in hand were left in the lurch. However, some hotels in Nagercoil, despite putting up a board that Rs. 500 and Rs. 1,000 notes would not be accepted, took them on “humanitarian grounds” from tourists from far-off places like North India and Karnataka, according to a hotel owner.