There are several ways and means by which the common man and elite are trying to get rid of their old currency notes. Even as the Modi government declared that Rs 500 and Rs 1,000 would no longer be legal tender, the average Indian, found many ways to beat the system, thanks to a 50-day window given for exchange of these banknotes. The trend is give 10 lakhs old and take 9 lakhs new.
In fact, the best and most-preferred way for getting money legitimised – next only to gold – was the dollar. On a day when the market was volatile because the US Presidential vote was under way and a dollar was trading at Rs 66.53, deals were being struck with currency smugglers at the rate of Rs 75 to Rs 87.
There always are some opportunists ready to take advantage of someone’s desperation. They have turned religious places, non-government organisations (NGOs) and gold jewellers into laundering centres.
Even the retail shops have become money-exchange centres, they are giving Rs 400 in exchange for Rs 500 notes, while some are giving Rs 4000 in exchange for Rs 5,000. Even some bank managers are getting offers for a 20 per cent cut in lieu of exchange of Rs 500 and Rs 1,000 notes.
The modus operandi is simple. Old currency notes of Rs 500 and Rs 1,000 are still being taken by the jewellers, but with back-dated bills. For purchases worth under Rs 2 lakh, there is no need for PAN card. So, multiple receipts with amounts less than Rs 2 lakh can easily be created.
A RR district real estate developer has reportedly paid in advance six months’ salary to its 100 employees, most of them labourers.
There are instances where people are turning to the Gods, literally. The world famous TTD is one place where old notes are being exchanged and also offered to the lord. They are going to religious places and exchanging the Rs 500 and Rs 1,000 notes they hold for Rs 100 notes.
Some money-changers are using people BPL system to operate their Jan Dhan Yojana accounts for depositing the old notes. Putting smaller amounts in different bank accounts divides a large amount, enabling a larger number of deposits.
A flat 25 per cent cut was offered to a banker, who did not wish to be named, for getting the notes exchanged in due course. The modus operandi: The businessman would deposit money with the banker and then take back 80 per cent of the money after some time, with the balance 20 per cent remaining with the banker as a facilitation fee.
Some popular food joints, salons, and gyms have come up with offers and discounts for those who want to bid goodbye to their old notes. Vegetable vendors, mutton shops, beef vendors are offering change for Rs 500 if you purchase for over Rs300.
Lets hope the India currency circus will end soon and the market get stabilised.
U.Srinivas-Editor
