The ensuing chaos over the scrapping of currency notes of Rs 500 and Rs 1,000 denomination resulted in an ugly standoff in the city amidst people who were looking for change and vendors who were haggling as their bounty was fast drying up, given the insatiable demand. The worst hit were toll plazas in the city where people were tendering Rs 500 and Rs 1000 notes for toll charge of as low as Rs 25. A toll plaza employee at the Electronic City stretch said they got around Rs 2.5 lakh as Rs 100 change and by afternoon, they were exhausted resulting in serpentine queues at the junctions.
The situation went from bad to worse forcing the Union transport minister Nitin Gadakari to tweet in which he mentioned that the toll charges will be waived for two days, till the time banks resume public operations.
Suresh Rangarajan K, Founder and CEO, CoLife said, “Start-ups and e-commerce companies that provide services, deliver goods and food on cash on delivery will suffer in the short term as consumers are not clear on the process and are panicking without reason. Genuine and legal transactions for small amounts can be done and notes exchanged even today and can be deposited into the respective bank accounts by retailers. So the confusion created amongst consumers is uncalled for technically.”
However, most e-commerce retail and food outlets stopped their cash on delivery services causing lot of trouble for customers. Many startups like Swiggies, Amazon and Uber circulated messages about suspending their COD services over scrapping of the currency notes. Even petrol bunks in the city were in for a mixed reaction as people came to the outlets either to indulge in binge buying of fuel tendering Rs 500 and Rs 1000 or trying to get change by handing the notes after getting their fill of fuel.
Each and every industry reacted to the decision of the government and the real estate sector, which is assumed to have been the playground for benami transaction had mixed feelings over the issue.
“The biggest impact will be felt in the secondary housing market and the ancillary industry such as home furnishing, interiors designs etc, where there are significant cash components involved. There will be some short term glitches but eventually it will lead to a more affordable, transparent and sustainable real estate industry,” said Debashish Hota, Co-founder & COO, ZippServ.com, India’s first real estate risk assessment firm.
Meanwhile, Jagadish Babu, President, CREDAI Karnataka said it is a brilliant move by our Prime Minister. The banning of higher currency notes is a major move which will help curb unaccounted-for cash. The effects will be far-reaching and immediate. This will help bring about greater transparency and give the Indian real estate sector more credibility. The real estate sector wholeheartedly welcomes this move.
According to the report, every day there are minimum 12 to 13 Kannada films shooting at different locations, but they were forced to stop on Wednesday. Every shooting process will be depending on the cash transaction from financiers for the different payment settlements. As per the Kannada film industry, entire shooting will be depending on the cash for the payments, with minimum of Rs 2 lakh for one day. Each and every payment like location, unit workers, junior artist and many other basic needs for the shooting process were stopped. End of the day, producers were not able to give payments because all workers are asking it only in Rs. 100 notes.
After the sudden announcement of the ban on the currency notes, theatre business has also fallen. Many theatres were seen empty on Wednesday and many of the multiplexes decreased their tickets prices. Speaking to Bangalore Mirror, a multiplex media coordinator said, “We have stopped receiving 500 Rs note from Wednesday and in some parts the ticket rates have come down.”
Credits Bangalore Mirror