Rs 2,000 note withdrawal: Banks see no rush for exchange, deposit

Some banks did see customers coming in to exchange or deposit Rs 2,000 notes but there was no rush for it.

It was business as usual for banks on the first day of accepting Rs 2,000 currency notes that were withdrawn by the Reserve Bank of India (RBI) late last week.

Moneycontrol reporters visited several bank branches in Mumbai and Delhi and observed that there was no rush of people to either deposit or exchange their Rs 2,000 notes.

On May 19, announcing the decision to withdraw the high-value notes, the RBI said people could visit bank branches from May 23 to September 30 to deposit or exchange their Rs 2,000 notes.

“I went to the branch to enquire about Rs 2,000 note exchange. I wanted to know whether there are forms to fill or any other things to do before depositing Rs 2,000 notes,” said an HDFC Bank customer in Mumbai.

Some banks did see some customers coming in to exchange or deposit Rs 2,000 notes but there was no rush for it.

“We had some customers who wanted to deposit their Rs 2,000 notes. But only 3-4 of them came today,” said the branch manager of a bank, who did not wish to be named.

Also read: From 1946 to 2023, a timeline of demonetisation and rupee note withdrawals in India

Another manager with a public sector bank said: "We have made a separate counter for exchanging these notes. We have also arranged a drinking water facility and proper sitting arrangements. We are expecting more customers in the coming days, so we have arranged the facilities accordingly."

Form mandatory in some banks

Some customers did raise issues with the exchange process. A customer with a public sector bank said that when he went to deposit his Rs 2,000 note, a bank representative told him to fill out a form.

Also read: Ground Report | No panic in gold jewellery market on Rs 2,000 note withdrawal

“I was told to fill out a form that required Aadhar card details,” said the customer.

Forms for deposits and exchange

HDFC Bank, Canara Bank, Indian Bank, and Bank of Baroda have asked customers to fill out request slips for the exchange of Rs 2,000 bank notes, slips gathered by Moneycontrol showed.

The slip further said that any identity proof such as Aadhar card, Driving Licence, Voter ID Card, Passport, NREGA Card, Pan Card, or letter issued by the National Population Register containing details of name and address to be shown at the counter. HDFC Bank asked to self-attest a copy of any document with the request slip, its form showed.

Also read: No form or identity proof needed to exchange Rs 2,000 notes, says SBI

Union Bank of India and ICICI Bank asked customers to fill out deposit slips for the exchange of Rs 2000 banknotes at their branches.

Further, one of the executives at the Axis Bank branch at Bhayandar West, Thane, said the bank is only accepting deposits over the counter or in cash deposit machines.

When asked about the exchange of notes, the executive at the branch said, “We have not received any communication from our management for the exchange of notes, once we get an update we will start.”

Similarly, the IDBI Bank branch at Bhayandar, Thane, on May 23 was only exchanging two Rs 2,000 banknotes due to lower cash for exchange at the branch, a senior executive present at the branch told Moneycontrol.

Also read: MC Explains | What to do with your Rs 2,000 currency notes?

“This is only for today; tomorrow we will have adequate cash and there will not be any problem,” he added. “A lot of people have visited our branch since morning for exchange as well as deposit of these notes. In this branch, for deposit or exchange of Rs 2,000 banknote, only a deposit slip is required.”

Announcements by RBI and banks

The country’s largest public sector bank, State Bank of India (SBI), on May 22 informed all its branches that no form or identity proof would be needed to exchange Rs 2,000 currency notes, even as it reiterated the one-time limit of Rs 20,000 for depositing or exchanging these notes.

RBI Governor Shaktikanta Das on May 22 said that banks will have to arrange adequate facilities for customers coming to deposit or exchange Rs 2,000 notes. “Provide shade and water to those exchanging Rs 2,000 notes,” said Das.

During the visit to several banks, Moneycontrol observed that some banks have made special facilities for customers. For example, a branch of Indian Bank had an exclusive counter for customers coming to exchange or deposit Rs 2,000 notes.

Also read: RBI to withdraw Rs 2,000 notes: Here is what data shows on currency denominations in circulation

The branch manager of a private bank, on condition of anonymity, said it is still waiting for instructions from the head office to organise additional facilities for people coming to deposit or exchange Rs 2,000 notes.

“We have heard that the RBI has told banks to offer facilities to customers. We are waiting for instructions from our head office,” said the manager.

Withdrawal of notes

The RBI on May 19 said it is withdrawing Rs 2,000 notes from circulation based on a review and as part of a clean note policy. However, the banknotes in Rs 2,000 denomination will continue to be legal tender, the RBI said in a release.

The central bank has advised members of the public to deposit Rs 2,000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch.

"Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," the RBI said in the release.