Some progress but there are still problems.
Government is working on allowing merchants to make large deposits of $1oo notes at December 31 and has arrangements for Muslims to redeem their bills. However, there was uncertainty as to whether businesses can refuse to accept the old $100 banknotes before the December 31 deadline.
“The existing paper $100 note is legal tender until midnight December 31. We’re seeking advice on whether people can refuse it” Finance Minister Colm Imbert said in the Senate yesterday.
He gave the latest position on various issues stemming from Government’s demonetisation of the paper-based $100 bill and changeover to new polymer notes.
When the changeover began yesterday, apart from long lines at banks, worried merchants and a confused public, the other problem was businesses refusing to accept the old bills before the deadline. At least one posted on social media that it will not accept old notes after December 15. Some Port-of-Spain/San Fernando taxi drivers had mixed positions on accepting the note and patients visiting the San Fernando General Hospital eye clinic reported that a nearby eatery refused $100 notes.
Opposition MP David Lee said: “My business people say they’re not taking the old notes now as they require many twenties to give change and they’re not getting that amount of notes from the banking system. Business people are also refusing the old notes as a precaution.
“They don’t want to be stuck with old notes. Some supermarkets and malls stores are also refusing it as they have to keep running to the bank to deposit—a security risk.”
At yesterday’s Senate session, Imbert was asked by Opposition Senator Wade Mark what action is being taken to address problems with businesses refusing the old notes.
“As Minister, I will ask the Central Bank Governor to see what arrangement can be made for merchants who wish to turn in large quantities of old notes close to the December 31 deadline but I’m being advised at this time, it’s a complicated matter,” Imbert said.
Mark asked if it was legal for businesses to automatically refuse to accept the old note before December 31.
“The existing cloth-paper $100 note is legal tender and will be until midnight December 31. The issue is whether in a private transaction between two private parties—private individuals or private company—whether you can compel somebody to take a particular note, for example, a person may not have change for it.
“I’m being advised and will get proper legal advice on it. I’ve engaged two senior counsels to say what is the practice in other places with demonetisation. But it’s a private transaction between private individuals or company. We have to look at that and see what the Attorney General also says. I don’t want to step out of my crease and give a definitive answer.”
On limits imposed by banks in the redemption of notes and arrangements for Muslims to redeem, Imbert said people with no banking record will have a $10,000 per transaction limit and those with more than $10,000 will have to go to Central Bank to change money and fill out forms.
“If someone walks in with more than $2 million in cash, they can go to Central Bank. That’s where people of the Muslim faith can also go to if they have large amounts of cash they wish to redeem,” he said
Imbert said Government plans to stick to the December 31 deadline but “has given itself the flexibility in the law to extend the date of cancellation if necessary.”