An Indian railway counter cashier counts 1000 and 500 rupee notes at Allahabad Railway station in Allahabad on November 9, 2016. India's government tried to quell the panic caused by a bombshell decision to withdraw 500 and 1,000 rupee notes from circulat
Many currency exchange houses here suspended selling and buying of Indian currency, yesterday with India discontinuing Rs500 and Rs1000 currency notes, last night. Many who turned up at various exchanges were left disappointed as exchanges refused to buy Indian currency.
The currency notes of Rs500 and Rs1000 will no longer be valid as announced by Indian Prime Minister Narendra Modi in a televised address to the country. Instead, notes of Rs2000 and a newly designed Rs500 are being introduced.
“More people are turning up asking for exchanging the currency, after the announcement was made. However, we have stopped currency buying and selling. People are walking in with considerable amount of money to be exchanged,” said an employee of an exchange house.
“Most of the exchanges have stoped buying Indian rupee of 500 and 1,000 denominations. There is no way for us to transport this money to banks in India,” said another exchange employee.
However, one of the exchanges The Peninsula contacted yesterday was selling Indian notes of 500 and 1,000 denominations at Rs28 against QR1.
“We will give this rate until stocks last. It is good for people who are going to India over the next few days,” a senior employee of the exchange said. “The overall financial transactions, stock market and other business will face uncertainty for few days. However, demonetizing Rs 500 and Rs 1,000 currency notes will bring a huge amount of the funds kept in these denominations into the banking channels,” said an expert.
The Peninsula visited some exchange houses yesterday and met considerable number of people turning up to exchange currency. Staff at major currency exchanges had hard time consoling the customers. “I had some Rs10,000 which I was supposed to send back home through my friend, who left for Indian today. However, I could not meet him and give this money. Now I am left with no means to send this money,” said one of the irate customers at an exchange house.
