‘Same difficult situation’: Petroleum dealers say customers paying Rs 2,000 even for Rs 200 purchase

The All India Petroleum Dealers Association has said that the Reserve Bank of India’s decision to withdraw Rs 2,000 banknotes from circulation has created the “same difficult situation” as the demonetisation in 2016 that created a difficult situation for the public and businesses alike. The association said that the decision to withdraw Rs 2,000 has made customers pay Rs 2,000 for even the smallest of purchases of Rs 100-200. Almost 90 per cent of payments are in notes of Rs 2,000, the association said. 

“All India Petroleum Dealers Association representing the issues of petroleum dealers would like to draw attention towards the RBI decision to withdraw Rs 2,000 note has again created the same difficult situation as was faced during 2016 demonetisation drive,” it said in a statement. It said that the majority of the customers are trying to use Rs 2,000 notes even for small purchases of Rs 100-200 and are expecting change from petrol pumps. 

It pointed out that, due to this, petrol pumps are running short of change. The association urged customers to pay through card or digitally, or to provide the exact amount in cash. 

The association requested the RBI to issue guidelines for banks to provide enough small denomination notes to petrol pumps in lieu of Rs 2,000 notes so that they can smoothly serve the customers. 

It said that before the withdrawal of Rs 2,000 notes, petrol pumps used to get 10 per cent of their cash in the form of Rs 2,000 notes, which has now jumped to 90 per cent. The association said that they have to deposit the amount in banks on a daily basis and now are fearful of income tax raids or notices with no fault of theirs “as they received more payment during that period due to increased sale and outstanding payment from credit customers”. 

Digital payments that used to be 40 per cent of their daily sales has gone down to 10 per cent, and cash sales have increased dramatically with customers offering Rs 2,000 banknotes, which might create trouble with income tax officials. 

The association said that they cannot provide change against every Rs 2,000 and urged the customers to understand their problem. 

The RBI, on Friday, announced the withdrawal of Rs 2,000 banknotes and set the deadline of September 30 for the public to either deposit or exchange their Rs 2,000 banknotes. The exchange service is for free. One can exchange up to Rs 20,000 at one go – meaning 10 banknotes – and there is no restriction for deposits. 

Also read: Rs 2,000 note withdrawal: RBI Governor Shaktikanta Das urges customers to not rush to banks

Also read: Exchange, deposit of Rs 2,000 notes can be done several times a day: DEA Secy Ajay Seth

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