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Post offices barred from exchanging Rs 2,000 notes, can accept deposits

Exchange facility is available only at banks. Customers can make deposits since the Rs 2,000 note is legal tender," said a top banking industry source

Money, Rs 2000, 200 notes, Rupees

BS Reporter Chennai

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Though banks started accepting Rs 2,000 notes on Tuesday, post offices across the country are not being allowed to exchange such notes, but will only be able to accept deposits as of now, a top banking industry source has said.

“The exchange facility is available only at banks. Customers can make deposits since the Rs 2,000 note is legal tender,” said a top banking industry source, to a question on whether the notes can be exchanged at post offices. According to the media reports, non-banking financial companies can also accept deposits in this denomination. At present, financial services are being offered across 155,000 post offices across the country. When the Rs 500 and Rs 1,000 bank notes were pulled out in November 2016, post offices were allowed to handle them.

This clarification comes at a time when most of the banks in the country have not seen any major rush on Tuesday to exchange or deposit Rs 2,000 notes. Reserve Bank of India governor Shaktikanta Das had said on Monday that there is no need to panic and rush to return such notes, as people have around four months to do so. He reaffirmed that even after September 30, Rs 2,000 will continue as legal tender and that the apex bank would be sensitive towards the needs of the people. Interestingly, there was confusion at many places on Tuesday about the requirement of identity cards such as PAN or Aadhaar, and official forms for exchange/deposit of such notes.

As part of its Clean Note Policy, RBI came out with its direction last week for the withdrawal of Rs 2,000 banknotes from circulation and also advised banks to stop issuing such notes with immediate effect. At present, exchange of Rs 2,000 notes up to a limit of Rs 20,000 are allowed in banks and also at 19 Regional Offices of the RBI.

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First Published: May 23 2023 | 7:04 PM IST

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