Wednesday, December 6, 2023
Home » Nation » Politics » May 23, 2023

Jewellery stores, fuel stations getting more 2000 notes after RBI effects control


Published on: May 23, 2023 | Updated on: May 23, 2023

A man holds Rs 2000 currency notes. (Image Source: PTI)

TIRUPATI: The 2,000 denomination currency notes were hardly to be seen in circulation in recent months but jewellery stores, fuel stations and other businesses in the district are witnessing a sudden surge in their appearance now.

This follows RBI’s announcement on Friday that it was slowly stopping the circulation of these notes and that these could be exchanged in banks until September 30.

Unlike in the 2016 scrapping of high-denomination notes, RBI issued an advisory saying that the currency would remain legal tender even after the withdrawal of 2,000 notes from circulation.

Yet, panic disposal of stocked 2,000 notes is evident. Sales of jewellery increased slightly following the RBI decision, unlike in 2016 when there was panic buying of the yellow metal by those who kept bundles of the scrapped 500 and 1,000 notes.

Many jewellery shops in the Tirupati district saw a steady flow of customers doing purchases of gold with 2,000 notes.

"Ever since almost all jewellery shops have switched to digital payments after 2016, barely 10-15 per cent of our transactions are in cash. Most clients prefer digital payment," said Sambu Prasad, a jeweller.

Similarly, the use of 2,000 notes in filling stations, supermarkets and other retail establishments were rare of late but many are now turning to this currency. "Most of the buyers are preferring UPI payments. I receive 70 per cent of the payment through this mode. But, after RBI’s announcement, people are coming with 2,000 notes to buy groceries," said G. Surendra, a retail shop owner.

Fuel stations are seeing a manifold increase in consumers coming in with 2,000 notes to fill their vehicles with petrol or diesel. "Since the RBI's decision, the coming in of 2,000 notes has increased by about tenfold. These notes cannot be exchanged at fuel stations, but they can be used to purchase fuel. Some are even asking for an exchange," Raju Yadav, a fuel station worker, said.