PETALING JAYA, Nov 12 — Rupees in Rs500 and Rs1,000 denominations are still available in the city despite not being legal tender since Wednesday.

While three of four money changers visited refused to either buy or sell the notes, one money changer was willing to sell but not buy them.

Malay Mail purchased two Rs500 notes from the dealer in the city centre which had a notice outside his counter stating “We do not accept INR500 and INR1000 notes” they were not buying the notes.

“I am waiting for the association to make things crystal clear,” he said referring to the Malaysian Association of Money Services Business.

Despite being reluctant at first, the employee agreed to sell two Rs500 notes for RM62.

“Several collectors have already come to buy them off me so these are all I have at the moment. The Rs1,000 is not available but you may try your luck elsewhere,” he said,

“As we have not received any official communication on what to do about the notes, they should be available to the public, but no money changer is going to buy them of course,” he said.

A spokesman for Bank Negara Malaysia (BNM) said the central bank would not be issuing a statement on the issue and attempts to contact the association were unsuccesful.

Earlier this week India’s Prime Minister Narendra Modi announced a crackdown on undeclared financial transactions.

The move included the two denominations being removed as legal tender making them worthless and forcing those who had previously kept undeclared cash to turn them in.

With a penalty of 200 per cent on any sum returned by tax dodgers in India, some have resorted to burning the notes rather than declaring their wealth.

Money changers elsewhere were taking no chances and refused to either buy or sell the notes.

Mohd Sayed, who works at a Bangsar-based exchange, said the outlet owner had instructed him to hold off selling or buying the notes.

“We have a large amount of Rupees in those two denominations but we will not be trading in either as the situation is unclear,” he said.

“Hopefully there will be an easy and centralised solution to this...perhaps BNM will intervene and buy them from us. Otherwise we may be facing losses,” he said.

Another money changer who operates in Taman Jaya said the Rs500 and Rs1,000 notes had not been legal tender since Wednesday.

“Therefore we had stopped trading in the notes since Tuesday. Those still doing so would be going against regulations by trading in invalid tender.”

Another money changer in Kuala Lumpur said he had completely run out of ringgit as many customers had traded the notes just before the announcement hit the news.

“I am not sure if they are worthless and if the central bank will not help I may have to go to India,  like others money changers are planning to do, to change them,” he said.