Mangaluru, Dec 8: Queues might have shortened a bit in front of banks and ATMs, but economic activity at the retail level in Mangaluru, Udupi and other parts of coastal Karnataka is still far from normal after the passage of a month since demonetisation took effect from November 8 midnight.
Retailers and small stores have complained of declining sales and the situation has only worsened instead of becoming better with no clue yet when it will be business as usual.
While the impact has been particularly harsh on street vendors, small retailers, where cash is the sole mode of transaction, too felt the heat. Most of them complained that their daily turnover has shrunk by a third.
On the other hand, thanks to the swiping machine facility, big super markets and malls have begun to snatch the costumers of small stores.
Scarcity for change
Meanwhile, the region is going through a change crisis, as most of the ATMs in Mangaluru, Udupi are still dispensing only Rs 2,000 notes.
Some ATMs are still not functioning regularly. The region is yet to receive the new currency of Rs 500 denomination in the required quantity. “The supply of currency to Mangaluru in the form of Rs 100, Rs 500 are not as per our expectations,” a bank official said.
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