Limited Crowds, Some Confusion: Day 1 Of Exchanging Rs 2,000 Notes
Bank branches continue to demand identity proof and ask customers to fill requisition forms.
Tuesday morning for banks in Mumbai's iconic Fort precinct started slow. Home to large branches of Indian banks, the area saw a limited footfall of people walking through branch doors to swap their Rs 2,000 notes for lower denominations.
A similar scene played out in localities across India as some people swapped their notes but no demand deluge emerged.
The Reserve Bank of India had announced the withdrawal of Rs 2,000 notes from circulation on Friday, but for those looking to exchange them for lower denominations, the facility has been made available starting Tuesday.
While staff at a private bank branch in Ghatkopar, Mumbai, was expecting crowds to gather in the morning, only a few people had showed up by noon—that, too, mostly to use the ATMs. Over the weekend, about 10-12 people each day came to the ATMs to deposit Rs 2,000 notes, a branch employee told BQ Prime, on the condition of anonymity.
While banks didn't see a rush to exchange the high-value notes, merchants witnessed an uptick in usage.
"People who used to come to swipe cards are now coming with Rs 2,000 note bundles," Hemraj Menkar, a sales executive at a local smartphone store in Ghatkopar, Mumbai, told BQ Prime.
Omprakash Agari, a fruit vendor in Ghatkopar, said people are making small-ticket purchases with the Rs 2,000 note. And, he ran out of change quickly, Agari said.
Although the RBI guidelines state that no identity proof or forms are required to exchange Rs 2,000 notes, bank branches in different locations are continuing to demand those from customers.
"Even if you have an account in a branch, a form needs to be filled. ID proof is also required and the number of notes you're exchanging has to be noted down," Jubin Jania, a private bank customer told BQ Prime at the bank's branch in Dadar, Mumbai.
Overall, the first day of swapping Rs 2,000 notes at banks progressed slow and steady. People can deposit or exchange these currency notes by Sept. 30, 2023 at banks, business correspondent offices, and RBI's regional offices.
Earlier today, BQ Prime also reported that those holding Rs 2,000 currency notes after Sept. 30 may have to approach the Reserve Bank of India's regional offices to exchange them, according to a person with knowledge of the matter, who spoke on condition of anonymity. Banks will likely not deal in Rs 2,000 notes after the deadline, this person said.