Punjab fuel pumps flooded with Rs 2000 notes, set terms
Due to the sudden inflow of legal tender, digital payments have fallen to around 10% from 40% of the daily sales, according to Punjab Petroleum Dealers Association.
Published: 26th May 2023 07:44 AM | Last Updated: 26th May 2023 07:44 AM | A+A A-
CHANDIGARH: Fuel stations across Punjab are requesting customers that if one buys fuel worth Rs 2,000 or more, then they would accept the notes and not for the measly purchase of Rs 50 and the like. They cite the problem of change as they are flooded with Rs 2,000 notes following the gradual phasing out of the currency bills around a week ago.
Due to the sudden inflow of legal tender, digital payments have fallen to around 10% from 40% of the daily sales, according to Punjab Petroleum Dealers Association. However, filling stations get 90% of their sales in cash in the form of Rs 2,000 notes, the association added.
The RBI recently explained that Rs 2,000 notes would continue to be the legal tender, customers across the board have suddenly started giving these notes to petrol pumps, general shops, food outlets, bakeries, and others. This has brought extra pressure of change on these businesses. Most retailers are requesting their customers to pay either online or with currencies other than Rs 2,000 notes.
Sandeep Sehgal, president of the Punjab Petroleum Dealers Association, said the RBI decision to withdraw Rs 2,000 note has again created the 2016 demonetization situation. “Most customers are trying to use Rs 2,000 notes even for small purchases of Rs 100 to 200. We request the RBI to give guidelines to banks for providing enough small denomination notes, especially to fuel stations in lieu of Rs 2,000 notes so that we can smoothly serve our customers,’’ he said.
If the situation continues, it will create trouble for us with income tax authorities, said Sehgal. While announcing the phasing out of Rs 2,000 note, the RBI said these notes, introduced in November 2016, were meant to meet the currency requirement of the time in the context of the demonetization of the Rs 500 and Rs 1,000 notes in circulation at that time. Printing of new Rs 2,000 notes was stopped in FY19 and most of these notes are at the end of their life span.
RBI’s decision to withdraw these notes is in light of its ‘clean note policy.’ The central bank has also made it clear that the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.