The foreign exchange agencies in Puducherry seem to be badly affected by demonetization, as they are unable to change currencies due to deficiency of funds.
This comes after the central government set a limit of Rs 10,000 per day to be withdrawn through current accounts, reported The Times of India.
Mostly the currency exchange firm clients include local people who receive money from relatives abroad and foreign tourists.
The money changers have been forced to issue cheques even for smaller sums such as Rs 2000. They said that while the local people were hesitant to take cheques, foreign tourists were not allowed to accept cheques as they did not have bank accounts in India.
As per law, non-resident Indians (NRIs) and foreigners are allowed to trade in Indian currencies upto $3000 and have to receive cheques if it crosses $3000.
There are about 20 foreign exchanges in Puducherry and their business has been affected drastically. In the last three days, it has gone down by nearly 20 per cent.
K Sezian, manager of SS Forex Limited told TOI that they do not have any Indian currencies. Earlier the agency used to disburse up to Rs 50,000 in cash to the local people and when it crossed this amount, they used to issue cheques.