25 May 2023, Mumbai
Brands and mall operators have stated that the slight increase in shopping over the weekend can be attributed to the ongoing wedding season and summer vacation plans, rather than the Reserve Bank of India's (RBI) decision to withdraw ₹2,000 notes from circulation. Cash transactions in some stores did show a slight spike.
Timeframe and Consumer Behavior
The extended deadline until September for depositing or exchanging ₹2,000 notes has contributed to the absence of a rush. Mall operators believe that the current momentum, driven by the wedding season, will continue as people have sufficient time to utilize their money. Consumers, seeking better discounts offered through credit cards, are also opting for non-cash transactions.
Factors Driving Shopping Activity; Leading fashion and lifestyle retailers, continue to accept ₹2,000 notes. While some retailers have observed a marginal increase in cash transactions, most have not experienced a significant impact from the withdrawal of the high-denomination notes.
The cash component of sales remains consistent, indicating that customers are not primarily visiting stores to dispose of ₹2,000 notes.