Normal life thrown out of gear after currency note withdrawal

Several shops, restaurants, fuel stations down shutters; foreign tourists caught unawares

IMMEDIATE REPERCUSSION:People queue up outside an ATM on Airport Road on Tuesday night. (Right) The main branch of the State Bank of India on Suffren Street remained closed on Wednesday . —PHOTOS: T.Singaravelou

The voiding of two common denominations of currency since midnight on Tuesday threw normal life out of gear in the city as several shops and restaurants downed shutters.

Ever since the announcement about the Rs. 500 and Rs. 1,000 notes ceasing to be legal tender was made public, long queues had formed outside ATMs on Tuesday night as people tried to withdraw Rs. 100 denomination currency or make a deposit on CDR machines.

Though petrol/diesel outlets, apart from government hospitals and milk booths, were allowed to accept the soon-to-be-obsolete currency, several fuelling stations shut shop as they ran out of change.

Jewellery shops were open but business was well under par. Major retailers displayed boards stating that Rs. 1000 and Rs. 500 notes would not be accepted.

“Gold is normally the safest choice of consumers to safeguard their small savings, but the demonetisation decision which came at about the time shops were closing neutralised that option,” said N. Naveen Baalaji, managing partner of Sri Lakshmi Jewellery.

“Shopping sentiment has soured and we expect it to remain so for the next few days as people are looking to stay afloat,” he said.

While most shopping outlets deemed it prudent to simply down shutters, in the ones that stayed open, transactions were confined to credit/debit cards.

Goubert Market on Nehru Street was a pale shadow of its usual bustling self as only small change was accepted by the vendors.

The demonetisation also caught tourists, especially foreigners, completely unawares.

Martin and his spouse from Australia were among the scores of tourists taken unawares by the demonetisation.

“We didn’t realise we were holding invalidated currency until we stepped out of our hotel rooms in the morning to buy some stuff from a superstore,” Mr. Martin said.

The visitors who are staying at the Ashram were told that the store would not accept the Rs. 500 note.

“We were told that we could use notes only against purchases for about Rs. 450,” said Mr. Martin.

On being informed of the demonetisation, they began to hunt for a bank to convert the currency only to learn that banks too were closed for the day. They have shelved their plans for shopping and hope to file up before a bank ahead of opening hour to convert currency on Thursday.