Wait for Rs. 500 note may get longer

Even as banks on Friday stopped the exchange of the banned Rs. 1,000 and Rs. 500 notes on the directive of the Ministry of Finance, it seems the wait for the new Rs. 500 note is likely to be longer.

With most banks facing shortage of Rs. 100 notes, the minimum withdrawal in banks had been unavoidably Rs. 2,000, since banks had no smaller currencies to dispense. This means, the customer had to inevitably withdraw Rs. 2,000 from a bank or ATM.

Barring a few, most ATMs had been loaded with Rs. 2,000 notes. Sources in the banking sector told The Hindu that banks have no information on when the new notes would be available. Only a couple of banks had got the new Rs. 500 notes in smaller quantities from the Bengaluru currency chest, which was exhausted in no time. “Some customers were visiting banks to inquire about the availability of smaller denomination, and were expressing their inability in getting change for Rs. 2,000,” the sources added.

Meanwhile, the practice of keeping accounts in neighbourhood shops has been on the rise to ‘tackle’ the small change problem. Some shops, particularly grocery shops, had started giving credit to regular customers.

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Printable version | Apr 7, 2020 9:25:42 AM | https://www.thehindu.com/news/national/karnataka/Wait-for-Rs.-500-note-may-get-longer/article16724667.ece

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