Bengaluru: Within few minutes after Prime Minister Narendra Modi announced cancellation of currency notes of Rs 500 and Rs 1,000 denominations, some gangs are now making rounds in the city offering Rs 100 notes for huge commission.
According to residents of Malleswaram, Richmond Town and Vijayanagar several people who collected Rs 100 notes through ATMs immediately after PM’s statement were offering Rs 400 for every Rs 500 note, with Rs 100 as commission.
As all the ATMs were closed on Wednesday, people were left with no option other than pay huge commission to these people. “Few people were on prowl since early morning in city railway station, Majestic bus terminus. Those who arrived in the city without knowing this development were forced to pay up to get Rs 100 currency notes,” said Shashikanth Manali, a trader in Majestic. According to the farmers, those gangs were active even in vegetable markets of the city. They were demanding 20 per cent for exchange of notes.
Chartered accountants in great demand
This is the one of the common question posed by the businessmen, heads of various educational institutions and professional college owners to their CAs on Wednesday. According to few accountants, Prime Minister’s move is expected to affect those who have amassed huge donations and accumulated money by not paying various state and central taxes. “GST is all set to be implemented. Every one were preparing for it. But this move has created tension among all. Most of the businessmen expected to share some of their unaccounted fortunes with their relatives and staff members,” said a chartered accountant.
Jewellery shops cash in
Even though the prime minister had announced that '500 and '1,000 notes would be like paper from Wednesday, many jewelers and shop keepers in the city were still accepting them. One of the reasons was that they could exchange them later by providing relevant documents. Some shops including electronics and jewelry stores in and around Malleswaram, Vijayanagar and Basavanagudi were found accepting these notes. Their logic was that they could exchange these denominations from Thursday. “There is no illegality. We are paying taxes on all the goods and purchases made,” said Rajesh Gowda, an electronics shop owner.
‘No change, couldn’t take auto’
Several cab and auto passengers expressed their displeasure over the banning currencies of '500 and '1,000 denominations without any prior notice on their social media pages. One of the common complaints was that they could not hire autos or cabs as the drivers were insisting on cash payments in '100 and lower denomination.
Several customers were forced to cancel their LPG and e-commerce orders as the delivery boys were rejecting all payments made in Rs 500 and Rs 1, 000 notes. All the major e-commerce service providers including Snapdeal sent an sms to all its customers in this regard. Even though petroleum products were kept out of this ‘note’ problem till Friday, LPG dealers were reluctant to accept any of the higher denomination notes.
Hospitals insist on card payment
Even though hospitals were directed to accept notes of Rs 500 and Rs 1,000 denominations, several patients alleged that some hospitals didn’t accept these notes. Instead they wanted to be paid through debit or credit cards.
According to the relative of a patient from Malleswaram, one of the local hospital’s account sections was not ready to accept cash. Instead they wanted the total bill to be paid via debit or credit card.
