Keralites on Saturday began to feel the pinch of shortage of valid currency notes with sectors like trade, transport, construction, labour, etc coming under pressure. Signs of the patience of people waiting at banks for exchanging notes wearing out were obvious at many places.
Several people standing in queues at banks for exchanging notes said they were there for the third consecutive day as they had not been able to get valid notes on the first two days. A large number of ATMs in the State did not function on Saturday and those that functioned ran out of money within minutes of opening.
However, most of the people waiting at banks said they were ready to go through such hardships since they were in full agreement with the demonetisation as it would “seal the vaults of black money forever”. “But the Centre should not think that it is our duty to go through this for days and weeks,” said John Scaria, a young IT professional.
Shops across Kerala will remain closed for indefinite period from Tuesday following the shortage of money, according to traders’ outfit Vyapari Vyavasayi Ekopana Samithi. The Samithi said the decision to shut shops was taken due to the severe shortage of small-denomination notes. Though Rs2,000 notes were available in a limited manner, shops could not do business due to shortage of Rs100, Rs50 and Rs20 notes, it said, adding that the trade volume in the shops had come down by more than 70 per cent in three days.
Meanwhile, counterfeit notes of Rs1,000 denomination worth Rs37,000 were seized from a 65-year-old woman, Mariyumma, at the SBI branch in Malappuram district. Mariyumma had reached the bank to deposit demonetised currency notes worth Rs45,000. The police nabbed the person who had given the fake notes to the woman, whose two sons were working in the Gulf.
Worst hit by the currency problem were people from poor and middle class families. Workers in the construction sector were hit as employers were unable to pay them the wages due to shortage of valid currency notes. Thousands of workers were seen struggling to buy essential commodities as they were unable to get the demonetized notes in their possession changed from banks.
Wholesale and retail markets for essential commodities in major cities like Kochi, Kozhikode and Thiruvananthapuram wore a deserted look on Saturday as shop-owners stopped accepting demonetized notes. “We can’t accept these notes because of accounting problems. Why should we invite troubleIJ” asked Mohiyuddin, a rice wholesaler in Valiyangadi market, Kozhikode.
The currency problem has hit even booze sales in the State with the revenues at Kerala State Beverages Corporation’s liquor shops dropping by over 35 percent since the demonetization. The corporation’s average daily turnover used to be Rs 29 crore before demonetization but this dropped to Rs 18 crore on Thursday and Rs 20.15 crore on Friday.
Private bus operation also has been hit by the demonetization. Operators in Kozhikode said a private bus used to have a daily collection of Rs 10,000 but this came down to less than Rs 6,000 on Thursday and Friday. “Many services will have to be suspended if the situation prevails,” said KP Sadasivan, vice-president of the Kozhikode district Bus Operators Association.
Despite the heavy rush of people at bank branches throughout the State, leftist bank employees’ union BEFI refused to postpone its three-day State conference. About 450 arrived in Thodupuzha, Idukki for the conference on the first day, Saturday, but organizers said bank authorities could call back the delegates to the meet any time.