You can start exchanging your Rs. 2,000 notes from today
What's the story
Anticipating a rush to exchange Rs. 2,000 notes, which begins on Tuesday, numerous banks have reportedly set up dedicated counters, people to manage queues, and enough inventory of lower denomination banknotes.
Earlier, the Reserve Bank of India (RBI) confirmed that the withdrawal process of Rs. 2,000 currency notes, which will remain legal tender, will continue until September.
Context
Why does this story matter?
Since the RBI announced the move to withdraw Rs. 2,000 notes, it has triggered collective anxiety among citizens, who fear a reprise of the 2016 demonetization.
In the past few days, people across India queued at banks and filling stations to exchange Rs. 2,000 notes.
Allegedly, besides failed promises to combat counterfeit currency and terrorism, the 2016 demonetization caused India's GDP to plunge considerably.
Details
Know about Rs. 2,000 exchange process
Some banks have already witnessed large deposits of Rs. 2,000 notes, with CNBC reporting that New Delhi's Parliament Street branch of State Bank of India (SBI) recorded 56 lakh such deposits on Saturday alone.
Presently, there is a Rs. 20,000 cap on exchange per visit to the bank; however, there's no limit on deposits or the number of visits a customer can make daily.
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Banks sought police assistance to maintain order
Banks in many states have sought the assistance of the local police to regulate queues in case of a heavy rush during the Rs. 2,000 note exchange process, according to the news outlet Hindustan Times.
People have also been cautioned by numerous banks against attempting to exchange or deposit counterfeit Rs. 2,000 notes, stating that a police case will be filed against such individuals.
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Only 10% of Rs. 2,000 notes in circulation
Almost 12,000 bank branches have set up separate counters for exchanging or depositing the Rs. 2,000 notes in Uttar Pradesh, United Forum of Bank Unions spokesperson Anil Tiwari said.
He also revealed that only 10% of the Rs. 2,000 notes are currently in circulation.
In Lucknow, Rs. 2,000 banknotes worth approximately Rs. 90 crore were deposited in banks and cash deposit machines on Monday.
Further information
PNB releases clarification on Rs. 2,000 notes
On Tuesday morning, Punjab National Bank (PNB) officials clarified that customers do not need their Aadhaar card or officially valid documents (OVD), nor do they need to fill out any form to exchange Rs. 2,000 notes at their branches, reported ANI.
The clarification was issued after old forms, claiming additional personal details were required for the deposit/exchange process, were circulated online.
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Don't rush to exchange Rs. 2,000 notes: RBI governor
Amid all the panic, RBI Governor Shaktikanta Das on Monday stated, "Let me clarify and re-emphasize that it is a part of the currency management operations of the Reserve Bank."
"For a long time, the Reserve Bank has been following a clean note policy. From time to time, RBI withdraws notes of a particular series and issues fresh notes," added Das.