Coins being sold at huge premium in black market in Mumbai

The next time you say, “Keep the change” to your chaiwala, think again. Loose change is available at a premium in the black market. There is a scarcity of coins, but the demand for the coins is soaring. Sensing an opportunity to make a quick buck, few traders in South Mumbai are black marketing the coins.

A poor supply of coins from the Reserve Bank of India (RBI) has given rise to the black-market, a trader informed.

Raju Shetty (name changed on request), a hotelier said, “The problem is that one has to wait in the queue for 6 hours, while the coins are easily available in the black-market.”

Most of the coins available are the latest released by the government. “It’s a mystery how they manage to get new coins,” wondered a trader.

Sources said that one has to pay Rs125 to get a change of Rs100. “Coins are available in the denominations of Re1, Rs2 and Rs5,” said the insider. Even 10 and 20 rupee notes are being black-marketed. “For a bundle of Rs10 and Rs20 notes, one pays Rs50. Effectively, a hundred notes of Rs10, which should cost Rs1,000, are being sold at Rs1,050. For Rs20, one has to pay Rs2,050 for one bundle of Rs20 notes,” he added.

“Majority of customers are hoteliers and milk traders,” sources said. Small-time traders in the Crawford Market area, Bhuleshwar and Mohammad Ali Road are also regular customers.

The rates in black vary from Rs15 to Rs30 for change of Rs100. “The rates keep changing. During festivals it peaks and then slides but never goes below Rs15,” said a trader.