HYDERABAD: Want a change for those bunch of Rs 2,000 notes? The kiranawala or salesman at your nearest petrol station may fret to give it, but take the pain to travel some extra kilometres to Reserve Bank of India (RBI) in Saifabad, one is sure to find middlemen who give money of lower denomination for a nominal charge of Rs 50 to Rs 100.
Vimalamma (name changed), an agent, said that she had been doing the business of “selling cash” for 15 years now. Sitting on the footpath, in front of the RBI, Vimalamma has no fear of missing out on business despite the presence of numerous other agents.
“We all have our own customers. Even though banks provide lower denomination notes, people come here because the process is instantaneous and the availability of cash is guaranteed,” she adds. A large number of foreign nationals turn up here for instant cash exchange service.
Lower denomination notes of Rs 10, 20, 50, or 100 are given in bundles. For each bundle, depending on the time of the year, the commission is charged. Right now, as Ramzan month is being observed, the commission is Rs 80 per bundle.
“You have a festival or a baraat to observe joyous occasions at your home, money is the most important commodity to be given either to the drummers or for rituals. People generally want to give only freshly minted coins and notes. That is where we play a key role,” said an agent who allocates potential customers to money exchangers.
RBI the source of money
From where do these agents get the notes (of lower denominations) from? Explaining the modus operandi, Vimalamma said, “We sell cash by taking money from the RBI or any other bank either by ourselves or through our sources. Then, we take all of that with us and wait for it to be sold all through the week,” she adds.
Speaking to Express on the commission charged by middlemen, R Subramaniam, Regional Director for Telangana and Andhra Pradesh, RBI, said, “Security personnel are given the task to curb such practices. We have not authorised anybody nor it is legal. The currency issued by RBI is meant to be circulated at its face value. Nobody should be charging extra but when somebody is doing such transaction on streets, we have our security personnel to discourage such practices.”
But when Express spoke to the security personnel monitoring the entry gate at RBI, they said: “We are non-locals and our bosses have asked us to be polite and not to pick up any fights. This is why we do not enter into verbal spats with such persons.”
Exchange counter at RBI
A maximum of Rs 5,000 can be exchanged for lower denomination either from RBI or any other bank by showing ID proofs. There are eight exclusive counters - five for taking lower denomination notes, two for taking coins, and one for exchanging defective or faulty notes.
RBI holding camps to guard people against financial frauds
Hyderabad: In an attempt to improve the financial literacy in the two Telugu-speaking states, the Reserve Bank of India (RBI) and the ministry of finance have called for observance of Financial Literacy Week between June 4 and 8.
The idea of providing such literacy came after the RBI was flooded with complaints that fraudsters were asking for bank details, RBI officers said at a press conference held here on Monday. “Camps will be held to make people aware of such frauds and safety measures to be taken while making transactions will be explained,” said R Subramanian, RBI regional director for TS and AP.