Surge In Usage Of Rs 2,000 Notes: Bars, Restaurants Benefit As People Avoid Bank Queues

Kolkata: Since the Reserve Bank of India (RBI) announced the withdrawal of 2,000-rupee notes from circulation, their usage has skyrocketed in bars, restaurants, and Indian-made foreign liquor (IMFL) outlets across the city. Many patrons have found it more convenient and enjoyable to spend the currency at their favorite establishments rather than standing in long bank queues.

Chains of bars and restaurants have experienced a substantial increase in the circulation of 2,000-rupee notes, ranging from eight to twenty times higher compared to the previous week. The surge in transactions has primarily occurred in upscale establishments where bills typically range from Rs 2,000 to Rs 5,000.

A bar owner in New Town mentioned receiving 40-50 of the 2,000-rupee notes daily since the withdrawal announcement, a significant increase from less than five notes per day previously. Customers prefer spending their disposable cash on liquor or restaurant bills since they typically amount to Rs 2,000 or more at a time. The owner emphasized that they accept all notes as payment.

According to Sudesh Poddar, the president of the Federation of Hotel and Restaurant Associations of India (FHRAI), the number of transactions made with 2,000-rupee notes has increased twentyfold since the RBI's announcement. IMFL outlets have witnessed an eightfold rise in such transactions.