Union Finance Minister Nirmala Sitharaman Wednesday said banks were not instructed to stop dispensing Rs 2,000 notes. The statement comes amid reports claiming that Rs 2,000 notes will soon be taken out of circulation.
Reports said that efforts were on to recalibrate over 240,000 automated teller machines (ATMs) to replace the currency note with those of Rs 500 denomination. It also claimed that the largest denomination currency will remain legal tender but would be gradually phased out of public circulation.
"As far as I know, no such instruction has been given to banks," Sitharaman said today.
Recently, Indian Bank announced that it would not dispense Rs 2,000 notes anymore. The public-sector entity cited customer "customer preferences" as a reason for the move. The bank said it would load more of Rs 200 notes.
"Customers would step into the branch as soon as they withdrew cash from the ATM, asking for Rs 2,000 notes to be exchanged for notes of smaller denomination. They were just crowding our branches with long queues. So, we have decided to do away with Rs 2,000 notes," the bank said in a statement.
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