First Akshay Tritiya after demonetisation: Traders hopeful of increase in sales
All eyes are set on the first Akshay Tritiya after demonetisation, on April 28. After witnessing a lull after note ban, the traders are hopeful for increased sales and rush in shops on Friday.
“We expect a 10-20 percent increase in sales as compared to the regular days. In the previous years, Akshay Tritiya would mean huge rush and brisk business but this time we aren’t expecting too much rush. However, we are still hopeful of good sales as compared to regular days,” said Adeesh Kumar Jain, secretary Lucknow bullion traders’ association.
Traders say that while the initial few months were really dull, business has gradually picked up in the last few months. Moreover, with the wedding season on, the markets are witnessing satisfactory sales.
Also, a dip in gold prices is likely to boost sales. On Thursday, gold was priced at Rs 29,200 per 10 grams in the Lucknow markets. The highest in last two months has been Rs 29,900 for every 10 grams, said Jain.
Despite all this, an upper limit to cash and debit card transactions is what is making the traders fear. “There are no cash transactions for a purchase above Rs 2 lakh. Similarly, there are also limits by banks for transactions using debit cards.
“In this case, we are left with the option of taking payments through cheques,” said Vinod Maheshwari, general secretary of the Lucknow gold traders’ association.
Another problem being faced during cashless transactions is that of VAT and bank charges, which are to be borne by the customers.
“We charge 1 percent VAT and 2 percent bank charges from the customer for every non-cash transactions. The customer has to pay 3 percent above the price of the gold. This often doesn’t go well with many customers and they refuse to pay extra,” said Maheshwari.
Talking about online transfers through RTGS, he added, “Such mode is still not much in practice in the retail markets. RTGS payments are made from one dealer to another but very few customers opt for this medium.”