SBI’s u-turn: No slip, ID proof needed to swap ₹2,000 notes

The RBI had not issued any such instructions to banks to collect identity proofs of tenderers swapping the ₹2,000 bank notes, sources say, adding that the Finance Ministry had intervened to make SBI change its directive

May 21, 2023 02:19 pm | Updated May 22, 2023 07:49 pm IST - MUMBAI

The Reserve Bank of India announced the withdrawal of ₹2,000 currency notes from circulation. 

The Reserve Bank of India announced the withdrawal of ₹2,000 currency notes from circulation.  | Photo Credit: M.A. Sriram

In a sudden volte face following a huge public outcry, the State Bank of India — the country’s biggest bank — on Sunday withdrew its decision on the mandatory filling of a slip for exchange of ₹2,000 bank notes at its branches.

“In partial modification of instructions, it has been decided that the facility of exchange of ₹2,000 denomination bank notes to all members of the public upto limit of ₹20,000 at a time will be allowed without obtaining any requisition slip as per the format attached in Annuxure III,” said a letter issued by SBI Chief General Manager (Operations) S. Muralidharan.

“Further, no identity proof is required to be submitted by the tenderer at the time of exchange,” the letter issued to SBI branches said. “Hence, Annexure III which is attached to E-Circular dated 19.05.2023 stands withdrawn immediately. There is no change in other instruments given in the E-Circular,” it added.

Also Read | Opposition slams government over RBI’s withdrawal of ₹2,000 notes 

KYC norms

On Friday, the same SBI office had issued a letter saying, “Deposit of ₹2,000 banknotes into accounts maintained with our bank will be allowed in the usual manner, that is, without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable Statutory requirements.” SBI’s KYC norms require a requisition slip and identity proofs to be submitted.

“The branches are also advised to comply with Cash Transaction Reporting (CT) and Suspicious Transaction Reporting (STR) requirements, where applicable,” it had stated. There shall not be any limit on the quantity and value of the ₹2,000 denomination notes to be credited into the account maintained with the bank, it had added.

‘Not an RBI directive’

It is learnt that the Reserve Bank of India (RBI) had not issued any such instructions to banks to collect identity proofs of tenderers swapping the ₹2,000 bank notes, and the SBI had issued the directive on its own. Sources also say that the condition had been withdrawn following the intervention of the Finance Ministry after the public hue and cry.

As other banks from both the public and private sector generally follow the SBI’s lead in such matters, it is likely that no other bank will ask for any slip or proofs to be furnished during the exchange of notes which will commence from Tuesday.

Things to keep in mind while exchanging a ₹2,000 note
1. It is not compulsory for someone to be the customer of a bank to get a ₹2,000 note exchanged.
2. A non-account holder can exchange ₹2,000 notes up to ₹20,000 at a time at any bank branch.
3. RBI confirms that people do not have to pay any extra fee to exchange the note.
4. A bank may require you to fill a ‘Request Slip’ to facilitate the exchange.
5. A ‘Request Slip’ may require an identification card to be provided. Aadhaar cards, Driving licenses, Voter ID cards, Passports, NREGA cards, and Population Registers can be provided for the same.
Note: SBI will neither ask customers to fill a request slip, nor provide an identification card.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.