THRISSUR: Ever since the Central Government announced the demonetisation of high-value notes, the demand for gold witnessed a drastic dip in the state. The prevailing circumstances in the country with availability of limited cash from banks and ATMs have forced Keralites to go for card payments and other cashless modes for jewellery purchases.
Baby George, CEO of Joy Alukkas group, says payments using cards have increased exponentially in the past few weeks. “We have witnessed a 40-per cent increase in payment using cards. It is also a fact that the business has dipped sharply. But, purchase of gold in small quantities by individuals have increased, with most of them resorting to digital payments. The possibilities of alternative transaction methods like demand draft are also being used by the customers,” he said.
According to Jewellery Manufacturers Association (JMA) president Kuriappan K Erinjery, the gold purchasing style of Malayalis has a specialty. “If Keralities get small amount of money, they prefer to invest it in gold. They purchase small quantity of gold as savings. Normally, they used to make payments using cash,” Erinjery said. But post-demonetisation, the mode of payment has changed to digital.
Vinod G, working at Goodwin Jewellers, said card payments have increased to 55 per cent at the store over the past few weeks.
RTGS Mode
Roughly, 50 per cent of gold sales in Thiruvananthapuram city have shifted to RTGS mode. Shortage of liquid cash and limit for POS purchase are prompting people, especially big purchases for marriage, to go for RTGS.
Meanwhile, gold sales in the capital have picked up significantly, thanks to traders. “There was a huge slump in the first 3-4 days. Now, 60-70 per cent of sales has been restored,” says B Govindan, president of All-Kerala Gold and Silver Merchants Association. According to the association, purchases over liquid cash have come down heavily. Small purchases are done through swiping machines.
Exchange purchase
Another trend is purchase by exchange of old gold. “Exchange purchase has increased tremendously. People find it hard to get sufficient money for buying ornaments for marriage. Now, the trend is to exchange all old stock with new ornaments,” Govindan said.