Agents offer small notes with big cuts

Their phones have been ringing since Tuesday after Prime Minister Narendra Modi announced that notes of Rs 500 and Rs 1,000 denominations were now invalid.Currency agents, who supply small denomination notes to traders and other retail businesses, said that the demand for Rs 10, 20, 50 and 100 has gone up manifold within 24 hours.

The impact was visible in the city markets on Wednesday. Footfalls dropped dramatically. Traders had to refuse goods to customers as they didn't have change. “Yesterday, I had asked five banks to give us change so that my business doesn't suffer but they all refused. In such a situation, traders have no option but to take money from currency agents,“ said Sanjiv Mehra, president of Khan Market Traders' Association.

Though the high denomination notes have been banned, some agents in the Walled City were accepting them. A currency changer at Khari Baoli -the largest wholesale spice market in Asia -said that they have raised their rates as demand has soared.

“Many traders from Khan Market and Karol Bagh have already bought the bundles of notes we had.We are now short of Rs 100 notes,“ said the note changer. He is now giving back only Rs 400 for a Rs 500 note as against Rs 480 earlier.

By Wednesday evening, the currency agents had started refusing to accept the invalid notes. “We have bundles of Rs 10 and 20, but we are not taking Rs 500 or Rs 1,000 notes,“ said Chander, a currency agent.Traders said they are now waiting for banks to reopen on Thursday. “I called an agent to give me a bundle of Rs 50 yesterday but it is not available. They are not accepting Rs 500 and Rs 1,000 notes anymore,“ said Ashok Randhawa, a trader at Sarojini Nagar Market.

The Walled City also has several touts sitting on the pavements of the many bazaars waiting for customers. They buy old and torn notes and return people cash after deducting a commission.

One such tout, Mahesh Jain, in a small shop near Fatehpuri Mosque, said he has been exchanging old notes for the past 40 years. He said he will now buy Rs 500 notes for only Rs 300. “I have increased the rate as I don't have enough notes left. I have stopped taking Rs 1,000 notes as I have only 20-odd Rs 100 notes left,“ he said.