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Jewellery shops are running in loss
Posted on: 24/Nov/2016 1:08:12 PM
After the demonetization of 500 and 1000 rupee notes, people are not buying gold. The gold merchants are saying that there is a loss to the tune of Rs 200 Crores per day because of this.
S. Santha Kumar, general secretary of The Madras Jewellers and Diamond Merchants` Association said: Due to scarcity of money people have totally stopped buying gold. Only 20 percent of business is going on. Because of this Tamil Nadu jewelers are losing Rs 200 Crores. The 20 percent business is done because of the credit and debit card holders. Banks were charging 1.5 percent service tax for credit and debit card holders. If the banks cancel these service charges, people will be benefited. Merchants business will also not be affected.
The Reserve Bank has announced that people can withdraw Rs 2.5 Lakhs for marriage expenses. This amount will not be useful at the present situation. If the amount is increased to Rs 5 Lakhs, there will be no dearth of money for the marriage people. We expect this situation will continue for next four months. Because of this, the gold business will decline. On that basis, the demand will be less and the gold rates may come down.
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