Can You Navigate the Confusing Guidelines of Exchanging Rs 2

Confusion and Inconsistent Guidelines Surrounding Exchange of Rs 2,000 Notes in India

• The Reserve Bank of India (RBI) withdrew Rs 2,000 notes from circulation last week, leading to confusion around the exchange and deposit process.
• On the first day of the exchange/deposit drive, most banks set up different guidelines, leaving individuals puzzled.
• While the RBI did not mention the requirement of any forms or ID proof for exchanging Rs 2,000 notes up to Rs 20,000 at a time, some banks demanded identity proof like PAN, Aadhaar, and asked people to fill out requisition forms.
• The fact that non-account holders have to furnish ID proof and fill out requisition forms for exchanging notes was not specifically mentioned by the central bank.
• The State Bank of India was the first to come out with a statement after the RBI’s decision that no form or slip would be required while exchanging or depositing Rs 2,000 notes, but most major banks have different guidelines for the exchange process.
• Kotak Mahindra Bank, UCO Bank, Bank of Baroda, PNB, and a few others have asked non-bank customers to fill out requisition forms for exchanging Rs 2,000 notes.
• ICICI Bank has also asked non-bank customers for ID to accept Rs 2,000 notes, while customers of the bank need not submit ID proofs or any details for exchange of the notes.
• Other financial institutions like Axis Bank, Bank of India, Yes Bank, and Standard Chartered are reportedly not asking for any ID from people who came to exchange notes at their respective branches.
• The RBI had said exchange of Rs 2,000 notes up to Rs 20,000 would be permitted at a time, without specifying whether this is a daily limit or a one-time limit.
• The inconsistency in the guidelines between different banks (and even branches of banks) has made the process of exchanging notes far more complicated than what the RBI had envisioned.
• RBI Governor Shaktikanta Das clarified that banks can follow their own rules, adding that no set guidelines have been issued by the central bank.
• Customers who are going to banks to get Rs 2,000 notes exchanged should ideally carry their ID proof in case it is needed and be ready to fill out a requisition form as there seems to be inconsistency in the procedure across banks and even their branches.