Soiled currency notes trade in Hyderabad on its last legs due to low returns

Once thriving, kiosks exchanging damaged currency now dwindle, as digital payments reduce cash use

Hyderabad: The soiled currency notes business is on its last legs. The shops where the soiled currency notes were exchanged for new ones are now dwindling.

Once active in markets of the city, a majority of the traders have now shut down the business due to low returns. “People are now using unified interface payment options. So there is no exchange of notes and in the end no damage to the currency. It means no business,” said Mohd Ilyas, who runs a shop at M J Market.

People from far-off villages, who visit the city on some work and are unfamiliar with banking operations or UPI transactions are the only people who visit these centres these days.

The traders take a commission of 10 per cent for exchanging the soiled notes with a new currency note.

Usually referred to as ‘old and cut note exchange’ centres, such kiosk currency exchange points remain at Chaderghat, Chikkadpally, MJ Market, Nampally and Charminar.

“It came handy for people who were shopping or on a journey. On noticing that a currency note is damaged, they would rush to the trader and get the note exchanged,” recalls Shamsuddin, a second generation trader, who continues to run the shop at Chaderghat.

At Charminar, one of the historic places, there were around five people who did it. Now only two remain. “The Nampally railway station, and Koti bus stop were other prominent places where you could find such facilities. People used to set up a counter on the side and conduct the business,” recalls Mohd Saleem, an old city resident.

The traders also stocked coins and the hoteliers used to collect it from them. However, such traders and even hawkers are now accepting e-wallet payments.

After collecting the soiled notes, they are taken to the Reserve Bank of India, where mutilated, soiled or imperfect currency notes are exchanged.