Banks prepare for note mobilization but see no rush at branches

Bank branches prepared to load Rs 2,000 notes, as directed by the Reserve Bank of India (RBI) on Friday. However, they have not yet seen any significant demand for depositing or exchanging banknotes.

He said the heads of branches of some major banks business line that unlike the de-circulation exercise in 2016, there has been no rush to reinstate the coin yet, likely due to the extended schedule and the fact that the ₹2,000 coin will continue to be in circulation even after September 30th.

Why did the Reserve Bank of India withdraw 2,000 rupee notes?
Why did the Reserve Bank of India withdraw 2,000 rupee notes?

“We have not seen any rush or queues at our branches for depositing/exchanging Rs 2,000 notes. A senior official of a public sector bank said that the awareness that these banknotes could be deposited/exchanged over a 130-day period and that they were still legal tender had alleviated any concern customers might have towards them.”

better awareness

Analysts said that the lack of restrictions on exchange or deposits and better awareness this time regarding the implications of the move has also helped people not to panic.

Some people tend to keep cash for precautionary purposes or to evade taxes. Therefore, it may not come directly and instead is spent or invested, said an analyst, adding that it is optimistic to assume that even 50 per cent of the 2,000 rupee notes in circulation will return to the banks.

“We’ve put in place the guardrails and operations and we’re ready for that,” said a branch manager, adding that there has been a spike in transactions across $2,000 notes at petrol pumps and other retail outlets, and thus, banks could see some momentum towards the end of the month as businesses look ahead. to share these notes.

Analysts said it is likely that some people will be waiting for more clarity on the matter, given that the RBI has said they will take matters such as people’s presence abroad into account and may adjust criteria accordingly, adding that this will take a few weeks. So that more people start approaching the banks with their notes.

(With input from K Ram Kumar)