As high value notes become idle paper, ‘₹100 notes being sold at premium & ₹1,000 notes at discount’

Wholesale and retail transactions come to near standstill across nation

CHENNAI: A day after Rs 500 and Rs 1000 denomination notes ceased to be legal tender, shops and other commercial establishments here bid adieu to the high valued currencies amidst speculation that Rs 100 notes were being sold at a premium and Rs 1000 denomination being undervalued.

However, the wholesale vegetable supplier to Chennai and its neighbourhoods, the Koyambedu market, had no apprehensions accepting the said denomination notes amidst a spike in sales of the greens.

Most of the shops — retail, jewellery, supermarkets and petty shops in the city told their customers that they are not accepting Rs 500 and Rs 1000, prompting many to opt for debit and credit card payments.

“We accepted Rs 500 and Rs 1000 till 12 last night yesterday for our transactions but have stopped accepting them today,” a jeweller at the gold hub of T Nagar said on conditions of anonymity, adding, card payment was a preferred mode.

Most of the supermarkets here also declared they were not accepting Rs 500 and Rs 1000 notes, and customers, who did not want to part with their precious Rs 50 and Rs 100 notes, most of them drawn from ATMS after a long wait last night, opted to pay through credit and debit cards.

“I hope things settle as quickly as possible as there are still places like small shops where they don’t accept cards,” M Subha, a homemaker purchasing goods at a supermarket said.

The Koyambedu market vendors are accepting Rs 500 and Rs 1000 notes, an association representative said.

“We don’t have a problem in accepting the notes as most of the traders are Income Tax Assesses and we will just deposit the money in bank,” said VR Sounderrajan, President, Koyambedu Vegetable Wholesale Association.

There were around 350 such traders and “most of them” were I-T assesses and were accepting the currency of said denominations, he said.

Sales of vegetables during the day has also doubled from around Rs 10 crore to Rs 20 crore, he said.

Many of the vendors and traders also acknowledged that they had heard about Rs 100 being sold for a premium or that Rs 1000 was being “undersold” but denied any direct knowledge.

“This could be a rumour or speculation,” Sounderrajan said.

Meanwhile, Milk vendors clarified that they were not accepting Rs 500 and Rs 1000 notes, contrary to public perception.

SA Ponnusamy, Founder and President, Tamil Nadu Milk Agents Welfare Association, asked people to not believe “rumours” that milk vendors were accepting the notes with said denomination. “When the agents already have these notes, paid by milk firms and retail outlets for distribution, it is impossible to further accept notes of this denomination. Therefore we request people not to trade in these currencies,” Ponnusamy said.

Traders and buyers at the busy Chintadiripet fish market also experienced problems in dealing with Rs 500 and Rs 1000 currency notes.

Many flashed the notes to the electronic media, suggesting difficulties in trading in these currencies.

Customers at various hotels found the going tough as many of the eateries refused to accept the high denomination Rs 500 and Rs 1000 notes.

A hotel here displayed a notice stating “Government ordered withdrawal of Rs 500 and Rs 1000 notes”, making it clear it would not accept these from customers.