Vendors selling new notes for a premium in Surat

Surat: Manoj Singapuri, vice-president of Southern Gujarat Chamber of Commerce and Industry’s (SGCCI) aviation committee, had gone to Bhagal to exchange a few of his torn and worn out notes in the denominations of Rs100, Rs10 and Rs20. Manoj saw that a private vendor had a stack of new notes in the denomination of Rs100.
He asked the vendor to give him new Rs100 notes in exchange.The vendor informed him that Rs100 note had a premium of Rs50. Manoj was asked to pay Rs150 in cash for a Rs100 new note. Shortage of new Rs50, Rs200 and Rs100 currency notes has led to their ‘sale’ at a higher price in the city.
Manoj said, “I was shocked when the vendor told me that the new Rs100 note had a premium of Rs50. Since, I was looking for a bundle of new notes amounting to Rs10,000 for the upcoming festival season, I paid him extra Rs5,000.”
Many people are approaching private vendors for new notes in the denominations of Rs50, Rs100 and Rs200 in view of the festive season. However, private vendors charge 10 per cent commission for exchanging torn notes and Rs50 to Rs70 extra for new notes.
The vendors can been seen sitting on roadside at Bhagal with a board which says ‘Phateli ane juni notes badli apvama aavse (change your soiled and torn notes here).’ Some of these vendors carry stacks of new currency notes of Rs50, Rs100 and Rs200 even as most cities in the country are yet to see them.
Rakeshbhai, a vendor, at Bhagal said, “We are not doing black-marketing of notes, but making them available to people at a premium. People are not getting new currency notes in the denominations of Rs50, Rs100 and Rs200 from ATMs or banks. If the government directs banks to give new notes to people directly, they would not have to come to us.”
Gujarat Bank Workers’ Union (Surat wing) joint secretary Vasant Barot said, “Only banks are authorized to exchange currency notes. People, who approach these vendors, are either not aware or don’t want to spend time in queues at the banks. Supply of new currency notes is very less in the city but they are available in banks. ATMs are being calibrated for new currency notes.”
Asked how they are able to get new currency notes when most in the city are not getting them, a vendor said, “We deal in worn out currency notes. People exchange worn out notes for new ones. We take old notes to bank for exchange. A middleman there takes commission and hands us notes in the denominations we want.”