Banks gear up as exchange process for ₹2k notes starts today

Anticipating a rush to swap ₹2,000 currency notes for smaller denominations on Tuesday, banks will have dedicated counters, people to manage queues and enough inventory of lower denomination banknotes, officials said on Monday.

The high-value notes can be exchanged without a requisition slip or identity proof, the central bank said. However, officials of some banks said they will allow deposits or exchange of ₹2,000 notes only if a person shows identity proof.

In many states, banks have sought the help of local police to regulate queues in case of heavy rush, officials said. Banks have cautioned people against trying to deposit or exchange fake ₹2,000 notes, saying a police case would be registered against such people.

In Uttar Pradesh, 12,000 bank branches have decided to set up separate counters for depositing or exchange of the ₹2,000 notes, said Anil Tiwari, spokesperson of the United Forum of Bank Unions. Banks are not expecting a huge rush as only 10% of the ₹2,000 notes are in circulation, he said.

Account holders whose KYC has been done can deposit any number of ₹2,000 notes in their accounts, and only notes worth ₹10,000 will be allowed in Jan Dhan accounts, Tiwari said.

“We would request the general public to ensure that they do not have any fake notes as FIR will be lodged against them for trying to deposit fake notes,” he said. “Banks have made complete arrangements for checking fake notes.”

On Monday, ₹2,000 banknotes worth about ₹90 crore were deposited in banks and cash deposit machines in Lucknow.

Jai Sangwan, chief manager of Union bank of India at Rohtak in Haryana, said the lender has set up separate counters for those customers who hold accounts with the bank and those who do not. “The customers can either deposit or change notes worth ₹20,000 in a day by bringing in one identity document,” he said.

In Punjab’s Bathinda, lead bank manager Manju Galhotra said the lenders are fully geared up to accept ₹2,000 notes from Tuesday. “Banks have received instructions to accept the highest value currency notes. People need not panic,” he said.

“Since our branch mostly caters to senior citizens and retail business, we are not expecting too much of a rush,” said Barna Chaudhary, a manager at IDBI Bank in Kolkata. “However, we have kept ₹40 lakh in denominations of 500, 200 and 100 for those who may come to exchange ₹2,000 notes.”

Similarly, a manager at Kotak Mahindra Bank said on condition of anonymity that the private bank has arranged for enough currency notes to exchange the ₹2,000 notes.

Bankers in Patna seemed to be confused over the number of circulars issued by the Reserve Bank. While a few banks, mostly state-run, have decided to facilitate the exchange of ₹2,000 notes without Id proofs, others said it was mandatory to have identifiable records of the person exchanging the notes, in accordance with the banking regulator’s guidelines to check circulation of fake notes.