The ‘kadak’ gang is back on the street outside the Reserve Bank of India (RBI) premises at Fort and they are now exchanging Rs 2,000 notes which the government has removed for circulation. Gang members have been blatantly operating from outside the RBI premises near Asiatic Library, approaching citizens with a promise to exchange their Rs 2,000 notes—without them having to stand in the long queues—for a commission of Rs 250-500 per note.

mid-day reporters Shirish Vaktania and Apoorva Agashe were at the location around 3.45 pm Wednesday, posing as customers looking to exchange Rs 2,000 notes. They asked the RBI security staff about exchanging Rs 2,000 notes and were told that the time to exchange the notes is from 10.30 am to 3 pm. Meanwhile, an agent arrived at the spot and in the presence of RBI security staff, told team mid-day that he could exchange the notes. There were more than 25-30 gang members, including women, operating at the location.

What transpired on Wednesday…

Agent 1: How much money do you want to exchange?
Reporter: We have Rs 1.5 lakh in Rs 2,000 notes. But, RBI will not exchange the notes.

Agent 1: Yes, RBI will do it, but you have to stand in a queue from 3 am. You`ll have to spend the entire day in the queue.
Reporter: Okay, we don`t want to spend the entire day in the queue.

Agent 1: We will exchange the notes and take Rs 300 commission per note.
Reporter: No, we can`t give that much commission. We will only give Rs 200 per note.

A man getting notes exchanged from a female agent

Agent 1: No, we can charge you Rs 250 and that`s final.
Reporter: It`s too high a rate. We will come tomorrow with the notes.

Team mid-day also met an agent behind the RBI office, where more than 20 agents were present to exchange Rs 2,000 notes.

Agent 2 (woman)
Reporter: We want to exchange Rs 2,000 notes.

Agent 2: Yes, we will do it. We will charge Rs 400 per note.
Reporter: No, other agents are exchanging notes for Rs 250.

Agent 2: We will also do it for R250 if you want. This is our final rate.
Reporter: No, it`s too high a price. We will lose around R30,000 out of the R1.5 lakh to be exchanged.

Agent 2: Sir, this is too low a rate. Last week, we were exchanging notes for R500-600 per note.
Reporter: Okay, we will come tomorrow.

Another agent then came forward…

Agent 3: We will exchange the note and take only R250, sir. This is our final rate.
Reporter: How will you do it? Will RBI help you?

Agent: We will have our people in the queue at night and they will exchange the notes. But we will check the notes and give you ‘crispy notes’ in return on the spot.
Reporter: Okay, we will come tomorrow.

mid-day carried a series of reports on the kadak gang who previously exchanged old notes for new crispy notes and charged commissions. One of the gang members told mid-day, “We have been at this place for many decades and we are doing this work without any fear. We are not cheating anyone. We are only taking a commission.”However, questions have been raised on how the gang obtains the new notes that are in series. One source told mid-day that the gang also has contacts inside the RBI office who help them exchange the notes.

Team mid-day had also visited the RBI office on December 29 and met kadak gang members. It was found that the gang had deployed some boys outside the RBI office and had been exchanging notes through these boys. The boys would convince potential customers to exchange notes through the gang and would lead them to the gang members. 

What transpired on December 29…

Reporter: I want to exchange Rs 2,000 notes.
Agent 1: How many notes do you have?

Reporter: I have 10 notes of R2,000 to exchange.
Agent 1: We will do it for a commission of R400 per note.
 
The reporter then approached a second agent who struck a deal and then took him on his bike to the kadak gang members behind the RBI office.

Reporter: I want to exchange a Rs 2,000 note and the other agent is charging Rs 400 per note. I have 20 notes.

Agent 2: Have you brought the notes?
Reporter: I have only one note right now, but I will bring the other notes tomorrow.

Agent 2: I will exchange this note for a commission of Rs 350 if you want.

The female gang member overseeing cash stored the boot of a scooter

What RBI says…

Outside the RBI office at Fort, several pamphlets have been pasted with instructions on how to exchange the Rs 2,000 notes.

Timing for exchange
10.30 am to 3 pm

Documents to carry
Copy of Aadhar card / driving licence / PAN card / voter ID / passport / NREGA card

For up to 10 notes
Carry print of Annexe 1 and submit with copy of Aadhar card in the envelope at the RBI counter

For more than 10 notes
Carry copy of Aadhar card, PAN card, a cancelled cheque and a copy of the front page of the passbook showing details of the bank account

*The same can be submitted to the RBI by post and the amount will be deposited in the bank account within 15 days.

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