No long queues, no panicking customers: India’s banks start exchanging discontinued 2,000-rupee notes

1 year ago 48

NEW DELHI: The window for depositing or exchanging the discontinued 2,000-rupee notes in India has now opened.

This comes after the Reserve Bank of India announced its withdrawal last week under its clean note policy, where it routinely withdraws old and soiled notes from circulation.

It is a move that has stirred some worry, as it reminds some people of a similar demonetisation exercise in 2016 that led to a huge cash shortage in the country.

But there were no long queues and no panicking customers observed in most places in New Delhi, as banks started exchanging the 2,000-rupee notes.

DEPOSIT, EXCHANGE 2,000-RUPEE NOTES BY SEP 30

It is a stark contrast from 2016 when queues extended around the block, after Indian Prime Minister Narendra Modi’s government withdrew 86 per cent of the economy's currency in circulation overnight.

People have until Sep 30 to deposit or exchange the 2,000-rupee notes, introduced into circulation in 2016, for a smaller denomination at a bank.

Lenders have been advised to accept notes even from people who do not have an account. There is also no need for additional paperwork.

However, some people are already reportedly facing problems. 

Some said they are being asked for identification proof, while others claimed that some banks are refusing to exchange the notes at all.

India’s central bank governor Shaktikanta Das has assured citizens that the exchange process will be smooth.

BUSINESSES GET ONBOARD

Still, there are some who are choosing to spend that cash instead of exchanging it.

Resident Sanjeev Sen Gupta said he would check with a store to see if he could get rid of his notes by buying some jewellery. 

“It totally depends on the understanding between the businessman and the customer. I am sure the jewellery shop owner will think about whether he should accept them,” he added. 

Meanwhile, some businesses are hoping to cash in on the situation by encouraging shoppers to use up their notes by purchasing goods or services.

Another resident, Ms Sange...

Read Entire Article