A public sector bank has put circulation of ₹2,000 notes under restrictions. ₹2,000 were newly introduced by the central government after old ₹500, ₹1,000 were banned in the country following Modi govt's big demonetization move in 2016 in order to combat black money, corruption and moving towards digital payments.
Senior management of a public sector bank has been asked to restrict the circulation of ₹2,000 notes and also not to stock it in ATMs, according to a report by Business Insider.
No reason for customers to panic
While circulation of ₹2,000 notes has been restricted by a public sector bank, there are no restrictions on the bank accepting ₹2,000 from its customers to deposit them.
However, the Reserve Bank of India (RBI) has not mentioned any reason as to why ₹2,000 notes circulation has been restricted by a public sector bank.
Printing of ₹2000 notes on hold since October 2019
Meanwhile, in an RTI reply, the central bank said that printing of ₹2,000 currency notes has been halted since October 2019.
Only ₹500, ₹200, ₹100 notes to be loaded in bank's ATMs
Following this move by the bank, it has asked senior management and officials to load only ₹500, ₹200, ₹100 currency notes in bank's ATMs till further orders.
No specific reason why ₹2,000 notes circulation being restricted
According to Business Insider's report, there is no mention of any specific reason as to why the circulation of ₹2,000 notes has been restricted. As per reports, the written instruction wasn't supposed to be coming out as it did and was a mistake. But the nationwide restriction on circulation of ₹2,000 stands still.
Restriction on circulation of ₹2,000 notes comes after fake denominations surface
The move to restrict the circulation of ₹2,000 currency notes has come after fake notes were found in huge volumes. According to the National Criminal Records Bureau (NCRB), data showed that fake ₹2,000 currency notes were in circulation in the market post-demonetization.
More than 50% of ₹2,000 currency notes seized turned out to be fake
According to the National Criminal Records Bureau (NCRB), more than 50% of the total ₹2,000 notes that were seized turned out to be fake currency.
₹2,000 notes put on hold by public sector banks
According to the Business Insider, SBI branch in New Delhi was unable to issue ₹2,000 notes when they tried to withdraw Rs 10,000. The bank said it only had one note of ₹2,000, therefore, the amount in ₹2,000 denomination cannot be withdrawn.
As per reports, ATMs of Bank of Baroda, Canara Bank in Mumbai did not dispense ₹2,000 notes on withdrawal of amount ₹4,000, ₹6,000. However, a ₹2,000 note was dispensed by an Andhra Bank ATM.
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