Money chang­ers stop han­dling ru­pee notes

The Sun (Malaysia) - - SUNBIZ - BY WAN ILAIKA MOHD ZAKARIA

PE­TAL­ING JAYA: Money chang­ers here have stopped buy­ing and sell­ing In­dian cur­rency notes fol­low­ing the with­drawal of 500 and 1,000 ru­pee notes from cir­cu­la­tion on Tues­day.

“We have stopped buy­ing and sell­ing the ru­pee notes be­cause they have no value at the mo­ment,” said an em­ployee at the money ex­change cen­tre con­tacted by Sun­Biz yes­ter­day.

“We have no idea when we will start buy­ing and sell­ing them again as we do not know what the out­come is go­ing to be,” he said, adding most of the money chang­ers have sus­pended buy­ing and sell­ing the cur­rency notes, es­pe­cially those of 500 and 1,000 ru­pees denom­i­na­tion.

The 500 and 1,000 notes, which are worth around US$7.50 (RM31.58) and US$15 re­spec­tively, are the largest bills in use in India.

In a tele­vised ad­dress to the coun­try on Tues­day, Modi said the gov­ern­ment has de­cided that the 500- and 1,000ru­pee cur­rency notes will no longer be le­gal ten­der, as part of its ini­tia­tive to break wide­spread cor­rup­tion and black money.

In­stead, the prime min­is­ter said a newly de­signed 500 and 2,000 ru­pee notes will be is­sued later by the Re­serve Bank of India.

“We only got a short no­tice this morn­ing to stop buy­ing and sell­ing the (ru­pee) notes. Un­til now we do not know what the (real) sit­u­a­tion is,” said an­other ex­change cen­tre em­ployee.

“I guess the peo­ple (here) just have to wait be­cause right now the notes can only be ex­changed with banks in India and there is no way that we can bring the money there,” he added.

The Malaysian As­so­ci­a­tion of Money Ser­vices Busi­ness CEO Shalini Pavithran was not avail­able for com­ment, when con­tacted.

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