Rs2,000 note exchange to begin today; banks gear up to manage rush

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Bank branches are gearing up to manage the rush to exchange Rs 2,000 notes from Tuesday. According to estimates by the Reserve Bank currently Rs 3.6 lakh crore of Rs 2,000 notes are in circulation and it expects most of these to be turned in over the span of next four months.

In preparations banks will have dedicated counters for the exchange of the high denomination notes, enough inventory to offer change and people to manage queues, officials told Hindustan Times. Though the banks are not expecting much rush as only 10 per cent of Rs 2,000 notes are in circulation.

The RBI had clarified that the exchange of Rs 2,000 notes will not require any slip or identity proof. However, some banks have said they would only allow the exchange and deposit of the denomination if people show their ID proof.

According to a report by Hindustan Times Banks have also asked the police for help in order to manage queues in case of heavy rush. Additionally, they have also asked people not to deposit or exchange fake notes as a police case would be filed against them.

A report by Times of India states that branch managers will be making a record of the currency notes exchanged against the depositors information in case the banks need to trail if they end up with counterfeit currency.

Anil Tiwari, a spokesperson from the United Forum Of Bank Unions told Hindustan Times that in Uttar Pradesh close to 12,000 bank branches have set up separate counters for the exchange of Rs 2,000 notes. He further added that account holders who have completed their KYC will be able to deposit any number of notes in their account, but Jan Dhan accounts can only exchange notes worth Rs 10,000.

In Lucknow, Rs 2,000 notes worth Rs 90 crore were deposited in banks through cash deposit machines and banks.

Meanwhile HDFC has sent a mail to its customers stating that they can exchange Rs 2,000 notes until the limit of Rs 20,000.

After the announcement from RBI businesses like petrol pumps, food delivery apps and jewellers have received higher amounts of Rs 2,000 notes.