Bank of India

Bank of India

Bank of India: Right outside the highly securedReserve Bank of India (RBI) office at Saifabad, an illegal business activity has been thriving involving hundreds of unemployed men andwomen - who have taken up the role of unofficial currency vendors. Charging anywhere between 2% and 10% to exchange higher denomination notes with lower denomination ones, these brokers have monopolized the bank role dispensing change. If there were a handful of such brokers working discreetly about five years ago, it has now become a full-fledged open trading centre with more than 200 vendors jostling for space outside the bank at any given time. Each day, this bunch of brokers exchange an estimated Rs 10 lakh and sometimes even more.

The modus operandi of these agents is simple. Everyday the bank counter opens from 10 am to 3 pm during which time the brokers exchange the amount for smaller denomination notes and sell the change outside. Most of the people queuing up at the RBI counters are either agents or their workers with a few from the general public, who find themselves edged out of the line.


The brokers, of course, do brisk business. They exchange a minimum amount of Rs 500 and charge Rs 50 in return for the change. Vendors here claim they can not only exchange thousands, but even lakhs should the customer be looking at procuring change sans any hassle. "Tell me how much amount you are looking at. I can even arrange for low denomination notes for lakhs of rupees within no time," bragged a vendor outside the RBI.

Surprisingly, this business has suddenly seen an influx of women, many of whom are poor housewives. Now they make up for more than majority of the vendors. "My husband is an alcoholic and we are reeling under a huge debt. I tell him that I am going to relative's house and do business here for about four hours every day," confided a female vendor.

Most of the clients who come here are traders, businessmen, general public in need of small change and even those who want to use currency coins for religious rituals. Ganesh Jain, anautomobile spare parts dealer is one such regular client here who paid Rs 150 extra for Rs 10,000 smaller denomination notes. "Since there is regular money transaction in my business in the form of payments I need smaller denominations. I find these vendors very helpful as only for a small exchange rate, I get the amount with my choice of denomination without having to waste much time."

Some of these vendors even have tie-ups with some traders and deliver the required denomination at their doorstep. While the bank officials brush it as an activity which is happening outside their premises, police officials indirectly blame the bank for the present situation. V Umender, Saifabad inspector, said, "We have warned these vendors on several occasions and even tried to move them but still they came back. Now we are trying to work on this issue seriously." "Had the bank authorities taken serious note of this issue and acted on time, this situation would not have arisen," he added. RBI officials remained unavailable for comment.

Bank of India