A notice at an Indian Oil petrol pump states that ₹2000 notes will be accepted only for transactions above ₹1000, after the RBI announced the withdrawal of ₹2000 notes. , photo credit: Nagra Gopal
Cash purchase of fuel at petrol pumps Use of ₹2,000 notes The daily sales have shot up to almost 90% as buyers rushed to deposit the withdrawn currency notes.
Petrol pump dealers said that earlier there was cash sale Sudden announcement of demonetisation of Rs 2,000 note on May 19 was only 10%, but now customers were using the withdrawn notes to make small purchases of ₹100/200, in the hope that petrol pumps would return the change.
They have now asked the Reserve Bank to direct banks to make available notes of small denominations sufficient to help them serve customers smoothly.
President of All India Petroleum Dealers Association said, “Most customers are trying to use ₹2,000 notes even for small purchases of ₹100-200 and petrol pumps are expecting a change and hence petro outlets across the country.” There’s a lack of change.” Ajay Bansal said in a statement.
It added that petrol pump dealers are requesting customers to use cards or digital payments for purchase of fuel.
“Prior to this ₹2,000 withdrawal, we used to get only 10% of our cash sales through ₹2,000 notes, but now almost 90% of the cash received at our outlets is in the form of ₹2,000 notes only, and we need to deposite. Banks have the same on a daily basis,” it noted.
Petrol pumps and some other daily essential services were allowed to accept old ₹500 and ₹1,000 notes after 8 November 2016, almost 86% of currency notes demonetised. However, the petrol pumps soon turned into outlets to wash the banned notes, which led the government to prematurely withdraw the facility.
This time also petrol pumps have become outlets to withdraw the withdrawn notes.
Bansal said, “We also request the RBI to issue directions to banks to provide adequate smaller denomination notes, especially to petrol pumps in exchange of ₹2,000 notes, so that we can easily serve our customers.” Can.”
He expressed apprehension that petrol pump dealers would again face problems as they did during 2016 demonetisation when most dealers received income tax notices or were raised “for no fault of theirs”.
“Also digital payments, which used to be 40 per cent of our daily sales, have suddenly become 10 per cent of daily sales, and our cash sales have increased dramatically as customers are desperately trying to access ₹2,000. which again create trouble for us with the Income Tax authorities,” he said.
₹2,000 currency notes account for about 10.8% of the total currency in circulation or ₹3.6 lakh crore. The notes can be exchanged or deposited till September 30, 2023.
As compared to demonetisation, this time, the amount of currency being withdrawn is much less and the period to complete the process is more spread.
In November 2016, 85% of the currency in circulation was withdrawn, with the old ₹500 and ₹1,000 notes being discontinued as legal tender. The whole process was completed in less time.
This time a smaller amount of currency in circulation (10.8%) will be affected, and the ₹2,000 note will remain legal tender. The entire process will be completed by September 2023.