Here’s how Crores of old notes are getting exchanged without queuing up in banks

If you have money, they have the way. That’s what the agents of illegal money exchange claims. Demonetization might have hurt the common men hard as they need to stand for hours in queue to withdraw money. But for a bunch of people running illegal business across the country, it’s a boon.

The illegal exchange of demonetized old notes of Rs 500 and Rs 1000 with freshly minted Rs 2000 has gone rampant. But don’t think this comes real easy. Black trade that started after the government’s good will of curbing black money has a lot of conditions associated.
Firstly the money meant to exchange needs to in crores and not some few thousands. Also there is a commission associated, which is steep.
The Economic Times spoke to a number of people in the trade of exchanging old notes with new. "If you have Rs 1 crore in cash, we can exchange it in one hour, anywhere in the country," said Jiten, one of the people claimed to have been involved in the trade. "Of course, you would have to pay a commission."

Jiten said he can exchange up to Rs 5 crore a day - but with a condition. "You have to be referred to us by someone who has already exchanged the money," he told the ET.
The commission is 10%. So for Rs 5 crores to exchange, the commission would be Rs 50 lakhs.

The banks may allege that they are targeted without reasons, the investigation by the financial daily found that managers to cashiers at many bank branches, both private and state-run, are part of the racket. There have been several cases where bankers have been booked for diverting funds and laundering black money for private gains.

What is worrisome is not just the easy manner in which the new notes are being exchanged illegally, but also the deep inroads the black money exchangers have made into the system.