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Exploring Zaveri Bazaar's Unique Gold Courier System
No bank, no app, just a Rs 10 note: Inside Zaveri Bazaar’s secretive gold courier system
Moneycontrol
Image: Moneycontrol
Zaveri Bazaar in Mumbai is a key hub for gold trade, relying on a traditional courier network known as angadia. This system, which uses low-tech methods like Rs 10 note serial numbers for verification, facilitates rapid cash and gold transfers without banks. Despite its efficiency, the model faces scrutiny due to its cash reliance.
- 01Zaveri Bazaar accounts for over 60% of India's gold trade, primarily using the angadia courier system.
- 02The angadia network operates on reputation, using code words and serial numbers from currency notes for verification.
- 03Around 200 angadias operate in Mumbai, charging nominal fees and delivering consignments within 24 hours.
- 04Handwritten khata ledgers persist alongside digital records, reflecting a culture of personal credibility in transactions.
- 05Recent enforcement actions highlight scrutiny over the cash-based model, with significant gold seizures reported.
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Zaveri Bazaar, located in south Mumbai, is a pivotal center for gold, bullion, and diamond trade, reportedly handling over 60% of India's gold transactions. This bustling market relies on the angadia system, a traditional courier network used by jewelers and traders to transport cash and gold without banks. The angadia method is characterized by its low-tech verification process, often utilizing the serial number of a Rs 10 note to confirm deliveries. Charges are minimal, typically around Rs 100 for a transfer of Rs 1 lakh, and deliveries are made swiftly, often within 24 hours. Despite the efficiency of this system, its reliance on cash transactions has drawn scrutiny from regulatory bodies, especially following recent seizures of smuggled gold. Additionally, the persistence of handwritten khata ledgers alongside modern accounting reflects a culture of trust and credibility in this trade, where personal relationships often outweigh formal contracts.
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The angadia system's reliance on cash transactions impacts regulatory oversight and enforcement efforts in the gold trade.
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