2000 rupee note: Public sector banks witness long queues as private banks turn extra cautious

MUMBAI: Public sector banks (PSBs) are witnessing long queues of people for exchanging the Rs 2,000 note, as many private bank branches are taking extra caution in accepting the notes for exchange.

Most private sector bank branches are insinsting on request slip and producing a proof of identity to exchange currency notes.

Some branches have also printed deposit slips for exchange seekers, requiring them to fill in the serial numbers of the notes.

Meanwhile, officials at Public sector banks that were not asking for documents told Times of India that customers of private banks were queuing up at their branches to exchange notes.

“We have been told not to ask for proof of identity, and many are coming in more than once a day to exchange,” said an State Bank of India (SBI) branch manager.

The State Bank of India had on May 20 asked branches to seek a deposit slip and identity proof from those coming to exchange their notes but had reversed its directive a day later.

Some customers also complained that branches of private banks were refusing to entertain non-customers for exchanging the notes.

In a separate case, a private bank refused to accept Rs 2,000 currency notes for deposit into the bank account without the presence of the accountholder.

With no clear-cut instructions in writing, the branch managers are under pressure.

Some banks are using the opportunity to increase their business.

Canara Bank has said that it has waived cash remittance charges for those making fixed deposits using Rs 2,000 denomination notes. The bank is marketing its 444-day deposit scheme, which offers 8 per cent interest.

Unity Small Finance Bank is asking Rs 2,000 notes holders to visit their branch and use them to open a fixed deposit and earn up to 9.5 per cent interest.

However, some businesses put out notices that they were not accepting Rs 2,000

notes.