Indians Rush For Gold In Order To Change 2000 Rupee Notes

Indians rush to get rid of their Rs 2000 notes

Indians are rushing to make expensive purchases because the Rs 2000 note will soon be discontinued. Daily necessities and even luxury goods are purchased. There will be no need to exchange or deposit the soon-to-be-withdrawn Rs 2000 notes when making these purchases.

By September, the Rs 2000 note will no longer be in use
The largest currency denomination in the country, the Rs 2000 note, will be removed from circulation by the end of September, according to a last week announcement by the Reserve Bank of India, the nation’s central bank. The decision was made for an unspecified reason. The timing of this action coincides with the nation’s state and general elections.

This decision caused less disruption than the 2016 denomination
The most recent decision to withdraw a currency denomination is anticipated to cause far less disruption than the 2016 demonetization, which saw 85% of the notes taken out of circulation overnight.

Related Read | End of 2000 Rs Note : Attack on black money or opposition’s election economy?

People have flocked to stores to spend Rs 2000 notes
This time, people have flocked to stores to spend Rs 2000 notes starting over the weekend. This would spare them the hassle of waiting in lines to exchange them at banks. The tax department might investigate because storing multiple Rs 2000 notes could be interpreted as an effort to conceal illegal cash.

Increased sales
On Tuesday, the first day the exchange was permitted, several Indian stores reported that the note was eagerly accepted and that they used the chance to boost sales.

“Since Saturday, many people have been paying for mangoes with 2,000-rupee notes,” according to Mohammad Azhar, 30, a mango vendor in Mumbai, India’s financial center, which is close to Crawford Market. Reuters reported on him.

“I receive 8 to 10 notes every day now. I’ll take it. Since it’s my business, I have no choice. Before September 30, I’ll make a single deposit for everything. Due to the note’s validity, there is no need for fear.”

Rado store manager Michael Martis reported a 60%–70% increase in 2000-rupee notes coming into his store since the announcement of the withdrawal. The store is located in a mall in the heart of Mumbai.

According to Martis, who was quoted by Reuters, “That has increased our watch sales to 3-4 pieces per day from 1-2 previously.”

Not all people are accepting
Some shopkeepers were hesitant to accept the notes.

I refuse to accept; I do not accept. A South Mumbai restaurant owner said, “I don’t want to go through the hassle of depositing it with my bank.

Bank branches in Mumbai and New Delhi were mostly quiet, with only a few people waiting in a queue, in contrast to 2016 when customers flocked to banks to exchange the currency notes that had been withdrawn.

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