Demonetization Aftermath: Chennai Businesses Say No to ₹2,000 Currency

Fuel outlets and restaurants in Chennai, India, are refusing to accept ₹2,000 notes, possibly in response to the Reserve Bank of India's announcement that these notes will be withdrawn from circulation. This decision has caused panic among stakeholders who fear harassment from Income Tax officials, as they experienced after the demonetization exercise in November 2016. Some fuel outlets belonging to oil marketing companies and restaurants are implementing this refusal policy. Dealers in the city are concerned about the tracking of transactions related to ₹2,000 notes and the perception of being viewed as potential wrongdoers by tax authorities. As a result, they want to avoid any trouble. This move by businesses appears to be a knee-jerk reaction to the upcoming withdrawal of ₹2,000 notes.

Key takeaways:

• Fuel outlets and restaurants in Chennai are refusing to accept ₹2,000 notes.
• The decision may stem from stakeholders' fears of harassment by Income Tax officials.
• Stakeholders experienced such harassment after the demonetization exercise in November 2016.
• Businesses want to avoid potential trouble by not accepting these notes.
• This refusal policy appears to be a response to the Reserve Bank of India's announcement of the withdrawal of ₹2,000 notes.