Change available with fuel bunks is limited amid more digital transactions. , Photo Credit: Nagra Gopal
Days after banks started exchanging ₹2,000 notes, petrol banks continue to receive more such notes from customers than before, in the wake of the Reserve Bank of India’s decision to pull the denomination out of active circulation. But there is no significant change in fuel sales. ,
“Many people are afraid that they can be tracked if they go to banks and deposit,” said a leader of petroleum dealers, adding that the pattern of more customers using ₹2,000 notes to buy fuel Linking is not specific to a region.
When the bank refuses to accept the notes, the customers get into an argument. But amid more digital transactions, the variation available with Bunk is limited. “From those taking bulk products like trucks, notes are accepted as it is a genuine transaction and is also reflected in our automation system. But when the quantity demanded is less and customers give higher denomination notes, we will not have much evidence,” explains Amarendra Reddy, president of the Telangana Petroleum Dealers Association.
Dealers say that since the RBI’s announcement on May 19, customers have been using the notes at fuel outlets, but this has not led to any significant increase in sales. Apart from coming under the scanner of enforcement agencies, higher notes in daily cash collection leads to higher cash handling charges to the banks for the dealers.
The levy applies to other businesses and customers depositing cash in excess of the threshold limit. Prakash Ammanabolu, president of the Telangana State Federation of Textile Associations, said, “Cash handling charges will be high… Some banks are also insisting on the customer’s Aadhaar number and form filling to exchange notes.”
CH Venkatachalam, general secretary of All India Bank Employees Union, has also pointed out to RBI how “some banks are still insisting on public to provide a request letter with details of notes, ID proof, contact number, address”.
Sources in banks say that on May 23, the number of customers was high, there has been no significant change in the number of customers coming to the branches to exchange notes or deposit them. A new month is likely to see more people trying to use them at fuel outlets, with employers, especially civil contractors, visiting bank branches to pay salaries with ₹2,000 notes.
On their part, petroleum dealers’ bodies such as the Consortium of Indian Petroleum Dealers (CIPD) have asked members to avoid bulk tendering of ₹2,000 notes. “Proper details (Aadhaar and PAN details) of the customers, if submitted, should be secured for accountability and currency channel traces, if IT enabled investigation in future,” it said recently. It also advised dealers not to deposit cash in excess of the business value of their daily transactions.
“Be cautious about depositing Rs 2,000 notes in excess of your normal daily average deposit in your bank accounts,” the CIPD urged dealers not to turn away customers. Instead inform them that such notes will be accepted if the transaction exceeds ₹1,000, as less change is available with the outlet.
A leader of the Telangana LPG Distributors Association said LPG agencies have been advised not to demonetise Rs 2,000 notes as a proportion of their sales.