PANAJI
Chaos and confusion reigned heavily on the minds of the aam aadmi as the reality of Prime Minister Narendra Modi’s announcement that existing notes of Rs 500 and Rs 1,000 had been demonetised.
The State’s business districts witnessed a slowdown in business in some cases establishments reporting a complete stop as hesitant customers stayed away unable to spend any of the money they had.
Even basic transactions like that of buying milk and bread were done with fear and caution as buyers were reluctant to let go off their precious Rs 100 notes fearing that they will be needed for something more urgent in the future.
As the day progressed many businesses began accepting the ‘invalidated’ notes in the assurance that they could be later deposited in the bank.
“We have no option but to accept notes of Rs 500 or risk losing our business,” Francis Pais a restaurateur said adding that he accepted Rs 500 notes but not the Rs 1,000 ones.
With the slowdown in business, other businesses advertised that they were accepting the notes as usual in a bid to increase their business.
“We have lost business to the tune of Rs 5 lakh. Several customers turned up asking that they will buy stuff in exchange for cash, but we had to turn them back,” an operator of a appliance store in Panaji said.
Several commuters turned up at petrol stations with Rs 1,000 notes asking to fill Rs 100 petrol in the hope that they will get Rs 900 in change only to be declined. Similar transactions were attempted at other outlets with limited success. Petrol dealers were only filling the full Rs 500 or Rs 1,000 and refusing to return change in view of the shortage of Rs 100 notes in circulation.
Chief Minister Laxmikant Parsekar admitted that the first day was chaotic with a lot of confusion.
“We have put things in place so that tomorrow is not the same as today,” Parsekar said in a late night press conference on Wednesday.
Parsekar however said that those who accepted the Rs 1,000 and rs 500 notes in exchange for goods and services despite it being ‘demonetised’ were justified in doing so.
“They are justified in doing so and can deposit the money in the bank,” Parsekar said.
Banks will open to the public on Thursday and begin rolling out cash as well as accepting old notes from the public on Thursday as well as being open over the weekend.
Members of the public can deposit money in their own KYC compliant accounts, but if the notes are to be exchanged for new notes, the limit will be Rs 4,000.
Asked about the hardships faced by tourists Parsekar said that they could use their cards or in extreme cases could visit the branches of banks in Goa in order to exchange money.
The most hit were small traders, shops and those services, which did not have access to card swiping machines, making it impossible for people to transact with their credit/debit cards. Making matters worse, banks and ATMs were closed on Wednesday, making it difficult for people to exchange the two demonetised currency notes with other denominations.
On the other hand, people largely welcomed the government’s move to scrap the two denominations without advance notice, which would target black and unaccounted money, mainly via the two denominations, which have now been withdrawn from circulation.
Many people, especially bankers and others in the financial services, felt that this short-term inconvenience would have positive
long-term benefits in attempts crackdown on corruption and eradicating black money, hoarding of cash and unaccounted money,
which rules the parallel economy.
