Petrol Dealers Face Change Shortage, Say Rs 2,000 Notes Make 90 Per Cent Of Cash Transactions

The pan-Indian association said difficulties faced by petrol pumps across the country in providing adequate change to customers as cash transactions spike

The RBI on Friday through a notification advised all banks to stop issuing Rs 2000 denomination banknotes with immediate effect. However, the banknotes in Rs 2000 denomination will continue to be legal tender.

The All India Petroleum Dealers Association (AIPDA) on Monday elaborated their concerns regarding the recent decision made by the Reserve Bank of India (RBI) to withdraw the Rs 2000 banknotes. In a release, the pan-Indian association said difficulties faced by petrol pumps across the country in providing adequate change to customers as transactions in cash spike.

In a statement, the association expressed their plight about the ongoing repercussions of the current situation. The dealers' bodu said that before the withdrawal of Rs 2000 banknotes only 10 per cent of cash sales at petrol outlets were in the form of Rs 2000 notes. Now, the association said, almost 90 per cent of cash recieved at outlets is in form of Rs 2,000 notes only. "We have to deposit the same in banks on daily basis. We are afraid that we would again face problems due to current secnario as was faced after demonitisation as most dealer received I-T notice/raids without any fault," the association said.

Ajay Bansal, president of the association, drew attention to the similarities between the current situation and the challenges experienced during the 2016 demonetisation drive. He said that the withdrawal of the Rs 2000 note has resulted in a significant shortage of change at petrol pumps across the country. Many customers continue to use these high-value notes even for small purchases, creating a strain on petrol outlets’ ability to meet the demand for change. Consequently, both dealers and customers are experiencing inconvenience.

Bansal urged customers to consider alternative payment methods such as card or digital payments to alleviate the shortage of change. He also emphasised the need for the RBI to issue guidelines to banks, ensuring an adequate supply of smaller denomination notes specifically for petrol pumps, thereby enabling smooth transactions for customers.

There has been a fivefold rise in payments with this denomination for fuel purchase by customers at petrol pumps in Indore, an office-bearer of a petrol pump association claimed on Monday.

Indore Petrol-Pump Dealers Association president Rajendra Singh Vasu said, "Payments in Rs 2,000 currency notes by customers for fuel purchase at petrol pumps has increased by at least five times. But, it is not a matter of concern for us as these notes can be easily exchanged in banks.” He said there have been some customers paying in Rs 2,000 currency notes for fuel worth only Rs 100 for their two-wheelers.

The RBI on Friday through a notification advised all banks to stop issuing Rs 2000 denomination banknotes with immediate effect. However, the banknotes in Rs 2000 denomination will continue to be legal tender.