Hyderabad: Soiled Currency Note Business Fades in City as Digital Payments Take Over
“People are now using UPI for almost every transaction. There’s barely any cash in use, so naturally, there's no exchange of damaged notes,” says Mohd Ilyas, who runs one of the few remaining shops at MJ Market.
Once a thriving part of Hyderabad’s bustling marketplaces, the business of exchanging soiled and torn currency notes is now on the verge of disappearing. Traders who ran kiosks offering fresh currency in exchange for damaged notes are shutting shop, citing low demand and the growing dominance of digital payment platforms.
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“People are now using UPI for almost every transaction. There’s barely any cash in use, so naturally, there’s no exchange of damaged notes,” says Mohd Ilyas, who runs one of the few remaining shops at MJ Market.
Vanishing Trade in Traditional Markets
At one point, these ‘old and cut note exchange’ centres were found in almost every busy corner of the city — from Chaderghat to Charminar, and from Nampally railway station to Koti bus stop. Now, only a handful remain.
“People would come rushing when they noticed a torn note while shopping or traveling. We were their go-to,” recalls Shamsuddin, a second-generation trader still operating in Chaderghat. His voice carries both pride and resignation — a reminder of a once-essential service now rendered obsolete.
In Charminar, there were once five such traders. Today, just two continue to operate. In areas like Chikkadpally and Nampally, similar stories are heard — shops either closed or surviving on a dwindling customer base.
Rural Visitors Keep Some Business Alive
The few customers who still depend on these services are visitors from villages unfamiliar with digital banking or UPI systems. For them, these kiosks offer a convenient option to exchange unusable notes for a small commission — typically 10%.
“These traders were not just exchangers. They also stocked coins, which hoteliers and vendors frequently needed. But now even they are switching to QR codes and wallets,” says Mohd Saleem, a resident of the old city.
Notes End Their Journey at RBI
After collecting soiled and damaged notes, traders would submit them to the Reserve Bank of India (RBI) for official exchange. But with the shrinking volume of such currency in circulation, even this process has lost momentum.
As digital transactions reshape India’s urban economy, a small but once-vital trade in Hyderabad is quietly fading into history.
