Petrol Pumps Suffering As A Result Of The RBI’s Decision To Withdraw Rs 2,000 Notes

Guwahati: Customers lining up with high-value currency notes starting on Friday late to buy fuel worth as little as Rs 100 or Rs 200 are putting a strain on petrol pumps as a result of the Reserve Bank of India’s (RBI) decision to remove Rs 2,000 banknotes from circulation. Due to the lack of smaller denomination notes, this has caused petrol stations to post signs warning that they will not be able to give change for amounts beyond Rs 2,000.

On the condition of anonymity, at least six dealers in Delhi, Uttar Pradesh, Haryana, Jharkhand, and Maharashtra claimed to be observing an abrupt increase in cash transactions. Numerous businesses in Uttar Pradesh were observed posting signs stating that Rs 2,000 notes will only be accepted when paying for fuel totaling Rs 1,000 or more, according to HT.

Elsewhere, dealers in Delhi are facing similar problems. A dealer was quoted by HT as saying, “Being in the capital, we cannot put up such notices. As ₹2,000 notes are legal tender, we cannot refuse them. But we are also short of smaller notes. We are consider requesting customers to take change through UPI, BHIM and Paytm.”

Another petrol pump owner said, “Earlier, ₹2,000 notes used to be 1-2% of our total daily sales. Now this has jumped to 80%. We are not banks, and our cash-in-hand is limited, depending what we get in everyday sales. It is a practical issue that arose due to the RBI’s decision to withdraw the ₹2,000 currency. It seems that people are not adequately aware that they have ample of time to exchange them in banks.”

It should be mentioned that although the RBI is removing the Rs. 2,000 banknotes from circulation, they will still be considered legal money. The RBI recommended consumers to swap or deposit the notes by September 30 in a notification that was published on May 19. Furthermore, it limited those intending to exchange the notes for lower denominations to a single transaction of Rs 20,000. There are no restrictions on depositing higher value notes in bank accounts after adhering to KYC standards.

Another dealer claimed that before making such a move, the RBI should have set up systems to swap Rs 2,000 bills. He claimed that commercials and marketing campaigns need to have been released with the announcement in order to comfort the general public.

The dealer was quoted as saying, “Once bitten twice shy. Even though general people don’t have many ₹2,000 notes and they have time till September 30 to get them exchanged in their banks, they don’t want to take any chance, thanks to the nightmarish experience of demonetisation of November 2016.”

A Mumbai-based professional, on the condition of anonymity, was quoted as saying, “After heated arguments, I had to use my credit card to pay the fuel bill.” He said that customers in Delhi could pay their fuel bills through Rs 2,000 notes, vehicle owners in other cities and remote areas are facing problems.

Meanwhile, a Chandigarh-based businessman said, “Petrol pumps are accepting ₹2,000 notes provided you fill fuel for the entire sum, as they don’t have small notes to return the balance.”