The government move to nullify two higher denominated currencies has hit Angadias, the trusted courier boys who carry their precious cargo between Mumbai and Surat, the biggest diamond polishing hub in India.
These agents, popular with Gujarati traders in Mumbai, have however managed to devise a new strategy within 24 hours to bail themselves out and keep operating as they have been for decades now.
Operating since Independence era, they have survived through all sorts of financial storms, including the virtual payment era. Hailing from Kathiawar region of Gujarat, Angadias thrive in areas where jewellers exist as they transport money, jewellery, diamonds, gold, and other precious and expensive stones between Gujarat (mostly Surat and Ahmedabad) and Mumbai.
Though, due to Diwali festivities, Angadias had shut their operations for a fortnight and were to resume their business only after November 15. However, before they could trade as usual, the announcement came in as a roadblock for them.
Even though most of them were on a Diwali vacation, visiting their hometowns, it took them less than 24 hours since the Prime Minister's late night address about demonetisation of Rs 500 and Rs 1,000 notes to come up with a way to survive.
Angadias deal in currency notes of high denominations only as their amount varies from as low as Rs 10,000 to several lakhs. There are at least 100 such operators in Mumbai, taking the total turnover of this mode of business into several crores. These Angadias charge a small fee, say around Rs 100-Rs 200 per lakh rupees, or an equivalent value.
"We only have notes of high denominations as it is easier to carry maximum cash. First we will have to do away with existing stock of notes," said a trader.
Another operator shared, "We will ask the recipient to either accept money in Rs 500 and Rs 1,000 denominations or we will return their cash to the sender. This will ensure we are left with least of such currency notes as even the receiver will take delivery from us or else he will fear non-payment of his dues (from the sender) for some months from now."
In the next few days, as the new notes start getting circulated, only cash in new notes of high denominations will be accepted. This will help in phasing out the old notes that are not legally acceptable in the market, but only at banks and post offices.
"Having notes of Rs 2,000 denomination will make our business operations easier. It means we can carry more money or our parcel weight can become lighter for the same amount that it used to take for Rs 1,000 denominations," opined a trader.
Once they begin operations from November 12-15 onwards, their prime agenda will be to clear old high denomination notes, but insiders state that it will take around 3-4 months for them to regain the lost business. Thus, though high value transactions may become difficult during the next couple of months, by the end of this financial year, it will be business as usual for them.
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