RBI has asked banks to keep separate daily records of the value of notes submitted for exchange and notes deposited. The central bank said it will pull that data as needed. In addition, the banks were asked to provide sufficient shaded waiting areas and drinking water in view of the summer season.
According to bank officials at the branches TOI visited, there were several inquiries about the frequency with which banknotes can be exchanged and the documentation required.
Officials said banks continued to accept deposits of Rs 2,000 notes, in line with their usual practice. ATM managers are expected to reset cash withdrawal machines to disable recycling of Rs 2,000 notes.
Branch officials said they do not expect any disruption in services as there is no additional requirement for depositing the Rs 2,000 notes. However, while banks have instructed their branches not to insist on proof of identity, branch employees were unsure of the procedure to be followed as their internal risk management process required them to do so. A private bank branch manager said the branch would keep a record of the exchanged bills and ask for details from the depositor. “We need to have a lead in case we end up with counterfeit bills,” the manager said.
Another branch manager said it was not possible to record the number of notes exchanged by an individual if there was no information about the depositor.
Meanwhile, HDFC Bank said in an email to customers that customers can exchange Rs 2,000 notes with a daily limit of Rs 20,000.
Many businesses, including petrol pumps and consumer durables, received Rs 2,000 notes as customers tried to use them up. Grocery delivery app Zomato said that as of Friday, 72% of the platform’s cash on delivery orders were paid for in Rs 2,000 bills.
Economists said the inflow of Rs 2,000 notes into the banking system would lead to a temporary surge in banks’ liquidity. According to a Bank of Baroda research note, depositing 50% of the total Rs 2,000 notes in banks will increase deposits by Rs. 1.8 million.
“All in all, this move could temporarily bring some relief to the banking sector’s liquidity, which has been rather tight so far. But it’s not a permanent solution,” he said Pranjul BhandariChief Economist for India and Indonesia HSBC bank.