Since it is customary for Muslims to give alms on Eid, people have been preserving loose change for the purpose.
With the arrival of Eid, the demand for "chillar", or small change, has touched a new high.
Since it is customary for Muslims to give alms on the occasion of Eid, people have been preserving chillar for the purpose, and thus, the city is currently facing a shortage of coins and currency notes of small denominations.
Otherwise considered valueless due to inflation, the one-rupee and 2-rupee coins have regained their importance in view of Eid, and ironically, are now available at a premium. This demand-supply gap has led to the establishment of an unorganised but vast "Chillar business" in the twin cities of Hyderabad and Secunderabad.
People sitting on the footpaths opposite the Reserve Bank Of India and a few other places in the city with packets of coins may look like small vendors, but for the next 3 days, they will be doing a turnover of nearly Rs. 25 lakh. These vendors sell coins and currency notes of small denominations, and their customers are the thousands of Muslims who give beggars about one or two rupees (or a maximum of 10 rupees) on Eid.
This year, the devaluation of currency has reduced the importance of the 5-rupee currency note. Earlier, a bundle of 100 five-rupee notes used to be sold for Rs. 700, but this year, it is available for around Rs. 550. However, the demand for 10-rupee notes is still high.
The demand for the coins or the actual chillar is still unbeatable, as this year, too, it is likely to be sold in huge volumes. The profit margin in the coins' business is over 15%.
Over 300 people are currently associated with the chillar business, which is estimated to do a turnover of nearly Rs. 25 lakh. Pre-counted bundles of 200 and 500 coins of the 1-rupee denomination, and those of 100, 200 and 500 coins of two and five rupee denominations are available for sale on the footpaths near the RBI building, Siddambar Bazar and a few other areas, for prices ranging from 15% to 25% more than the actual value of the coins or currency notes. (INN)