With the imminent withdrawal of the 2,000-rupee notes by the Indian central bank, citizens are resorting to purchasing everyday items and even high-end branded products to avoid the inconvenience of exchanging or depositing the soon-to-be-invalidated currency. The move to withdraw the largest denomination note has raised speculation due to upcoming state and general elections, during which cash transactions tend to surge, often involving unaccounted deals.
Unlike the disruptive demonetization of 86% of India’s currency in 2016, the current currency exchange is expected to have a milder impact. Since the announcement, people have been flocking to stores, using the 2,000-rupee notes to make purchases and bypass the need to queue up at banks or draw attention from tax authorities when depositing large sums.
Shopkeepers, on their part, have readily accepted the notes, seizing the opportunity to boost sales. “A lot of people are using 2,000-rupee notes to pay for mangoes since Saturday,” shared Mohammad Azhar, a mango seller in Mumbai.
Meanwhile, luxury stores like Rado have witnessed a significant increase in sales, with customers using the soon-to-be-discontinued notes.
While some shop owners remain reluctant to accept the notes to avoid the hassle of depositing them, bank branches in Mumbai and New Delhi experienced minimal queues compared to the 2016 episode. State Bank of India, the country’s largest lender, attracted the most customers as they allowed note exchange without requiring documentation for transactions up to 20,000 rupees at a time.
The 2,000-rupee notes are set to be phased out by the end of September. This development has prompted Indians to swiftly utilize them for their daily needs and indulgences before they lose their value.
