 "RBI displays the newly issued rupees 500 and 2000 notes at Reserve Bank of India headquarters in Mumbai")
While the country is still grappling with this new problem of Rs 1000 and Rs 500 notes being banned, the really resourceful and imaginative businessmen have already planned their moves. Bankers in the Fort area of Mumbai, India’s financial capital, have confirmed receiving calls for converting old currency with new one in due course, with a nice cut for them thrown in.
In the calls made to the bankers, a flat twenty 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% of the money after some time with the balance 20% remaining with the banker as a facilitation fee.
Though, Rs 1,000 notes have ceased to be legal tender, enterprising businessmen in Mumbai’s Zaveri Bazar and Delhi’s Kucha Mahajani at Chandni Chowk are offering to exchange these notes with Rs 500 to Rs 600 in return. The balance would remain as the cut for these “service providers”.
Even jewellers at the benchmark Zaveri Bazaar here accepted these notes on Wednesday, at a huge premium in the gold price of 10-15 per cent. Deals were also reported at up to 50 per cent premium against high value notes on Wednesday. Noted were also accepted for delivery after two-three days. Many jewellers in Mumbai suburbs kept their shops open till midnight on Tuesday and sold jewellery with a massive price premium (or discount in cash dealing with Rs 500 and Rs 1,000 notes).
Many consumers had panicked on Tuesday evening immediately after the announcement and rushed to jewellery shops in the vicinity with their cash. Trade sources believe some small retailers ran out of physical stocks. Many jewellers were quoting a gold price at Rs 34,500–35,000 (for 10g) in early Tuesday trade and making backdated bills. Traders were also heard quoting gold prices up to Rs 45,000 per 10g to panic customers.
“Nothing has changed since yesterday. The acceptance of Rs. 500/1,000 currencies continues, which we would deposit in the bank for their replacement with new ones,” said a jeweller in Zaveri Bazaar, on condition of anonymity.
