The government's decision to demonetise old high value currency notes has had a ripple effect on almost all sectors. The move has definitely brought cash transaction to a grinding halt for jewellers across the country.
"Since the announcement came cash sales have been zero. Those with immediate need of jewellery are transacting through cheques and cards but we have consciously decided to reject notes that are not legal tender anymore. The move is for the country's good" said Rahul Jain, Director of Operations at Navrathan Jewellers.
While there have been reports of people indulging in panic buying in an attempt to get rid of invalid notes soon after the government's decision was made public, jewellers attempting to sell products for higher prices were also reported across the country.
The Gems and Jewellery Trade Federation, however, had extended its support to demonetisation of Rs 500 and Rs 1,000 notes soon after the it was announced. "The industry as a whole has supported the move. Yes, sales have dropped and it will take sometime before things return to normalcy. Accepting invalid currency is as good as giving away goods for free. Moreover, people invest in jewellery when there is excess money be it legal or black", he added
Traders are glad that the new currency notes have already hit the banks. They now hope that the new currencies are pumped back into the market which will allow trade as usual.