The recent decision by the Reserve Bank of India (RBI) to withdraw Rs 2000 denomination notes from circulation has had a significant impact on Zomato’s cash-on-delivery (COD) orders.
On Monday, Zomato took to Twitter to express the repercussions of the RBI’s decision. According to their tweet, a substantial 72 percent of their COD orders had been paid using Rs 2000 notes.
Individuals utilize Rs 2000 notes for making payments
Despite the availability of an option to exchange Rs 2000 notes with lower denomination notes at bank branches, it appears that many individuals have resorted to utilizing their Rs 2000 notes for making payments.
The motive behind this behavior is to avoid standing in anticipated long queues at banks, which might be the case if they were to exchange these higher denomination notes for lower denominations. This trend poses a challenge to Zomato and other businesses.
What RBI governor says?
RBI Governor Shaktikanta Das addressed the concerns surrounding the withdrawal of Rs 2000 notes. He reassured the public that these notes would continue to be recognized as legal tender despite the decision to withdraw them from circulation.
He emphasized that there was no need for a rush to banks for exchanging Rs 2000 notes. He explained that the introduction of the denomination notes was primarily intended to replenish the money that had been taken out of the system during the demonetization of Rs 500 and Rs 1000 notes.
Regarding the deadline of September 30 for exchanging Rs 2000 notes, the Governor clarified that it was set to ensure the seriousness of the process. However, he also said that the September deadline will be revisited based on the situation.
