Cash in India - current experience

[samh004]

I go over once a year generally so have 10k in rupees sitting at home, let's see what happens in the new year.

I'd imagine there are many foreign nationals, tourists etc, that can't get back to India right now (and that's probably a good thing) that have the old 500 and 1000 rupee notes and are wondering what their options will be in the future. After all, if you have what were legitimate notes, why should you be penalised because you don't live there.

 

[leadman]

Any information on the situation with FX shops at SIN, or SYD/MEL for that matter?

CBA in Hobart told me today they no longer sell rupees.

Sorry I forgot to check in SYD and MEL today, but BKK is not selling any rupees

 

[RooFlyer]

Hmmmm. Might be an interesting trip in a few days. leadman, I imagine USD would be taken by shop-keepers and street vendors, if needs be?

My Delhi hotel just reported that there is still long queues at ATMs near the hotel and that they aren't selling any.

 

[leadman]

I think you have to be prepared to expect everything now. I would be tempted to also take small AUD; $5 and $10 to see if that might work too. I would also prepare myself for a bit of an airport wait on arrival and get a much as you can there. I will get an update from my indian colleague in the next 24 hours. Just arrived TPE and the guy in the FOREX booth just laughed at me when I asked!

 

[shan1983]

I think you have to be prepared to expect everything now. I would be tempted to also take small AUD; $5 and $10 to see if that might work too. I would also prepare myself for a bit of an airport wait on arrival and get a much as you can there. I will get an update from my indian colleague in the next 24 hours. Just arrived TPE and the guy in the FOREX booth just laughed at me when I asked!

Thanks for the updates!

I'm thinking that I might have to look for unofficial money changing services and offer a significant percentage of the transaction value as a fee. I know that Indian nationals can still deposit any amount of 500 and 1000 rupee notes into their accounts until March next year, so who wouldn't be up for an easy profit if they have cash spare to change? From previous experiences teaching adult Indian nationals here in Australia, there was not one of my students who didn't pressure me for a deal when it came to grades. Obviously this is not acceptable in Australia, but in these circumstances, it just might be acceptable over there. Hopefully it doesn't have to come to this in the first place.

Not sure if others have seen the stories of foreign tourists busking for cash, just to get by in recent weeks? Let's just say that I'm not one to busk...

 

[dajop]

I'd imagine there are many foreign nationals, tourists etc, that can't get back to India right now (and that's probably a good thing) that have the old 500 and 1000 rupee notes and are wondering what their options will be in the future. After all, if you have what were legitimate notes, why should you be penalised because you don't live there.

Yep, I visit semi-regularly for work, I usually keep a float of most currencies for places I visit more than once a year, you just lose money changing it back and forth all the time. Current have about $250 worth of 500 INR notes, and won't be back in India until January. Wondering what to do, hoping when I do get there, to be able to be "relieved" of them somehow.

But problems for foreign tourists and the like are minimal, compared to the challenges of those who are legitimately reliant on the cash economy (such as the tens or hundreds of millions of small farmers). I am told in urban areas things are settling down now, but in rural areas it's just a mess.

 

[dairyfloss]

I was in Bangalore the week (and night) that it went down. Absolute mayhem once ATMs etc. opened up, but the locals that I spoke to were actually really happy that Modi had done it, even if there was some short term pain for them, and the lower classes. They did seem to think the poorest folks wouldn't be too impacted as they were unlikely to be holding 500 and 1,000 Rs. notes.

I rarely use/have cash in India, but I had taken out 2,000 Rs, which came as 4 x 500 Rs notes, on the afternoon before the evening this was announced. I had some Aussie colleagues visiting with me that did the same, though they had taken out significantly more than I, as they were on their first visit and wanted to do some shopping, etc. After hearing the news, they straight away (and quite cleverly) used the cash to part-pay their hotel bill, before the clock struck 12 midnight, when the currency would no longer be accepted. They later claimed that payment back in their expenses.

I had one of my staff convert my few 500 Rs notes for 100 Rs notes a couple of days later. Our company somehow managed to get a Bank to come into our city office with a portable cash exchange set-up. They had to install temporary CCTV and everything in the room. It was quite impressive for what it was. They were in a meeting room opposite to mine, and the staff were queued up to that door the whole day! We have about 1,000 staff in that office.

Cheers,
Matt.

 

[RooFlyer]

No rupees at SYD international airside.

At SIN, T3, one of them allowed me R200 ($4) , the other 'no stock'.

 

[dajop]

They did seem to think the poorest folks wouldn't be too impacted as they were unlikely to be holding 500 and 1,000 Rs. notes.

Probably not much of an issue for the poor in urban areas for this reason. But in rural areas, it's not the currency holdings of poorer farmers that are the issue - more that commodity dealers don't have sufficient cash on hand to pay smaller farmers for their harvests. I'm told this has created tension in several parts of India, where they are harvesting crops at the moment.

 

[RooFlyer]

I've been in India for 3 days now, and situation the same. Any bank with cash still has long lines outside it.

The toll roads have been free since the currency crisis hit, but today were re-tolled, with disastrous results (I can personally attest!!). We were stuck for about 3/4 hr 1km out from one lot of toll booths - only started running again when they opened the gates for free, again.

Lots of new R2000 around, b-all new R500 though. Old R100s are being hoarded like precious jewels.

 

[leadman]

Scary stuff, it was supposed to get better by now. Are they taking FOREX instead of rupee's, thereby creating a secondary market? When I was over there a few weeks back at the start of this, there was little interest in my USD/AUD. wondering if this had changed. As in India, its not going to get better quickly.....

 

[shan1983]

Hmm, interesting Flyer.

Would definitely be keen to know if anyone is keen to accept foreign currency!
Did you have any trouble exchanging for rupee at the airport at all?

Interestingly, I spoke with a currency exchange guy here in Brissy and he said that as part of the new rules, it is now illegal for them to trade anything other than the new 500 and 2000 rupee notes. And naturally they don't expect to get them outside of India anytime soon. I hadn't heard this one before.

 

[RooFlyer]

I came with a bunch of US$1 and $5 notes as a back up, but as I'm on a private tour, I haven't had to use any currency yet. My tour leader says that people in the tourist trade are accepting USD, but in regular shops, they still aren't accepting readily.

 

[RooFlyer]

I asked my guide/tour leader directly about use of US$ after the currency change. According to him, nothing has changed much. Tourism businesses will accept USD, Euro etc, much as they always have. Non tourism business have not yet gone to accepting foreign currency in lieu of rupees, and he doubts that they will.

<snip>
Did you have any trouble exchanging for rupee at the airport at all?

Interestingly, I spoke with a currency exchange guy here in Brissy and he said that as part of the new rules, it is now illegal for them to trade anything other than the new 500 and 2000 rupee notes. And naturally they don't expect to get them outside of India anytime soon. I hadn't heard this one before.

I didn't try very hard at Delhi airport as I had already been told it was pointless. I passed one FX counter in the arrivals hall with about 15 people deep (which, compared to the city wasn't bad), but I didn't see if it was actually doing any business or not. Outside the arrivals hall I met my tour guy and we went straight to the car.

New 2,000 rupee notes are in abundant supply, but new 500s are very rare, and that's part of the problem. 2000 is just too large for most small operators to change.

 

[RooFlyer]

The Times of India (Jaipur edition) has several stories on the currency situation. On p2:




... which is rather disingenuous. Whilst they may not be as long as previously, every bank or ATM we passed in Jaipur and Agra in the past 2 days has significant queues - 50+ people. Many ATMs have their covers pulled down and many small bank branches do not appear to be open.

The story says also:

The banks expect the situation to return to normal by January-end as more fresh notes of Rs500 and Rs100s are expected to arrive at their branches.

That said, I spoke to a couple from Spain yesterday and they said that while it took "a while" they did get cash from an ATM. Also, the 2 Hiltons I've stayed at in the past 2 days can exchange FX to R2000 notes quite easily. Trouble is of course, they are very difficult to actually spend for small things like drinks etc. as the vendors can't / won't make change.

 

[shbap]

Been in India for a couple of weeks now and the situation really has not improved. And there are plenty of mixed messages about...

We got VERY lucky as someone in the family owns a petrol station, so exchanging Rs500/1000 notes we had acquired from money changers in Delhi truned out to be very easy! The money changers just did not have enough Rs100 notes, so the could only give us about half the amount in 100s and the rest in 500s (we changed about AUD1000). But of course I accepted these knowing I could change it at the petrol station for Rs100 notes.

I've tried to use my credit card as much as possible (I have a no FX fees card for international transactions). And in the cities at least, the biggest winners seem to be electronic wallet services, like Paytm - they are advertising a lot too and apparently have solutions for offline/non-internet based payments too, so hopefully the word spreads...eventually!

The ATMs which have money, appear now to have shorter queues so the wait shouldn't be more than 30 mins I'd say - this is in Mumbai!

 

[RooFlyer]

I arrived back in Delhi yesterday and agree that the queues appear to have gotten shorter ... 25 or so people for the 4 ATMs we passed.

 

[mandja]

HMMMMMMMM

Mrs Mandja and I are of to India on Saturday ...for a month and have managed to speak to dozens of Indians here and thus rounded up almost 700 rupees in old smaller notes....about $14
We have credit cards and ATM card, and trying to get local Indian debit cards. Our hotels and restaurants will(probably) take credit cards. I believe my Aussie credit card is ok for Uber?

I'm going to be in work meetings for part about 1/3rd of trip but wife is worried shell be stuck with no cash.

Im hearing mixed messages about using foreign currency and will presume it is not much help.
Anyone else have current news?

Ill report from Saturday on.

We go to (in order) - Bangalore , Rajasthan, Goa, Hyderabad and Ahmedabad.

 

[RooFlyer]

Hotels ( at least major chains) definitely OK for cards as are major shops. Hotels are also your best bet for some cash - although maybe mainly R2000 which isn't much good on the street.

It's really only small merchants where the problem lies for tourists ( no idea about Uber).