Rs 2000 note exchange window opens,confusion at some places

The 131-day window to exchange junked 2000 rupee currency notes opened on Tuesday with a mixed bag of small queues and confusion at some banks over the requirement of officially valid identity cards like PAN or Aadhaar, and official forms. Unlike November 2016, when old 500 and 1000 rupee notes - constituting some 86 per cent of the currency in circulation - were banned overnight, Rs 2000 currency notes continue to be legal tender for now, and the exchange window is more than double of that provided in 2016. No great rush was witnessed for exchange when branches opened. Outlets of private sector banks in metro cities in the early hours had business as usual.

While the Reserve Bank of India (RBI) has not made the presentation of a valid ID or filling of deposit forms mandatory, there were complaints from some places that banks were demanding customers to submit identity cards as proof. Some banks exchanged notes by making an electronic entry, few others asked customers to pen down their name and mobile number in a registrar without giving any identity proof.At some places, however, customers said they were asked to present their PAN or Aadhaar cards. A small number of customers claimed the bank they visited did not exchange the notes and instead asked them to deposit those in their accounts.

The Rs 2000 notes constitute around 10.8 per cent of total currency in circulation or Rs 3.6 lakh crore. The notes can be exchanged or deposited till September 30, 2023. Compared to demonetisation, this time the quantum of currency being withdrawn is significantly smaller and the period to complete the process is more spread out. State Bank of India, the country’s biggest bank, in an official memo to its branches stated that no form or slip would be required while exchanging or depositing Rs 2,000 notes. Private banks like Kotak and HSBC said they are asking for form/ID Proof for non-account holders. But Axis Bank, Standard Chartered, Yes Bank, Canara Bank and Bank of India said they are not mandating any form or ID proof. Bank of Baroda has said they don’t require any form but need ID proof for non-account holders. ICICI and HDFC have said they require all customers to fill out forms, but ID proof is needed only for non-account holders.