Day 1 of Rs 2,000 note exchange: Small queues in banks across Indian cities

New Delhi/Hyderabad: The first day for exchanging Rs. 2,000 banknotes saw small queues at banks across Indian cities.

The Reserve Bank of India has announced that all Rs. 2,000 notes will be withdrawn from circulation, and the currency notes must be deposited back into banks from 23 May to 30 September. The banknote will not be in use or circulation after 30 September.

Who is coming to the banks?

Women, businessmen, families who have weddings, and those who need money for education expenses abroad are the ones who are coming to exchange the notes. The daily limit is Rs. 20,000 per day.

Bankers said queues were seen in commercial areas only. In residential areas, banks had only 5 to 10 people come for the exchange.

Banks have been asked to exchange the notes without any identity proof but so far, only account holders have approached the banks. Bankers said it is “business as usual” for them.

Cash as mode of payment

After the announcement on 19 May, the pink Rs. 2,000 notes are being doled out for purchasing gold and silver and people are also opting for the cash-on-delivery option.

Jewellers’ associations have doled out 5 to 10% discounts on the purchase of premium jewellery.

Zomato app registered 72% collection of cash for food orders. All payments were made in Rs. 2,000 notes.

Real estate is down

Despite the announcement, the number of people opting for real estate is very low. There are not many takers, according to sources in the real estate.

Pink note not very popular

There were many rumours in the last three years that Rs. 2,000 notes would be banned. Due to this, hoarding was not as high as expected, stated officials. Unlike the earlier phase of demonetisation in 2016, where people were worried and scared and approached bank managers, no such panic was noticed on day one of the exchange.

No barricades were set up and it was business as usual in the banks.

Inputs from PTI