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Business News/ News / India2,000 note exchange process begins in banks today. Here's what PNB said

Banks in India started depositing and exchanging 2,000 notes on Tuesday. The Reserve Bank of India has issued a standard operating procedure (SOP) to banks to streamline the process. Yesterday, RBI Governor Shaktikanta Das reiterated that 2000 notes will continue to be a legal lender, after the Central Bank's announcement that the notes will be withdrawn from circulation.

He also said he doesn't expect a rush in the branches and urged people to not rush to banks.

Meanwhile, the Punjab National Bank (PNB) has issued a clarification on the exchange of 2,000 notes. The PNB bank stated that "No Aaadhar Card, No official verified documents (OVD) required, no need to fill any form is the current instruction to all the branches of Punjab National Bank".

Earlier, the State Bank of India (SBI) also issued guidelines for the exchange of 2,000 notes. The country's largest public lender directed its branches not to ask for any form of identity proof from customers who will come to exchange 2,000 notes.

The Reserve Bank of India (RBI) on Friday withdrew the 2000 denomination banknotes from circulation but they will continue to remain as legal tender. People can deposit or exchange 2,000 notes at any bank branch up to September 30, 2023.

A person can exchange up to a limit of 20,000 at a time without filling out any form or requisition slip.

On Tuesday, no great rush was witnessed for exchange when branches opened. Outlets of private sector banks in metro cities in the early hours had business as usual.

According to a senior official of a public sector bank, not much rush is seen so far because there is a window of four months for exchange, and currency in circulation to be exchanged is also relatively less compared to demonetisation.

According to the RBI Governor, the 2,000 note was primarily issued to replenish money, taken out from the system during the demonetisation of 500 notes and 1,000 notes.

2000 denomination banknote was introduced in November 2016, following the demonetisation.

Das on Monday put a rest to the speculation on the re-introduction of 1,000 notes into the system. Das categorically denied the reintroduction of 1,000 notes, stressing that there are no immediate plans to bring back the 1,000 denomination.

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Updated: 23 May 2023, 11:46 AM IST
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