Note exchange and concerns

The lack of clarity in the order regarding the withdrawal of Rs 2000 notes had led to many doubts and concerns. The conflicting reports in this regard on social media have also led to confusion among the people. The most important of which was the false propaganda that notes cannot be exchanged in the bank without providing a document and an affidavit. If a clear order had been issued in the beginning, such campaigns would not have taken place. Two days after the demonetization order came out, SBI had issued a clear instruction regarding the demonetization, which has come as a relief to the people. SBI has informed that no identification document or special application form is required to exchange Rs 2,000 notes up to an amount of Rs 20,000. This method can be used to exchange money from SBI branches as many times as required in a day. It does not require a bank account.

Only 10 notes of 2000 can be exchanged once. If one wants to exchange again, he should stand in the same queue again. As of now, anyone can deposit less than Rs 50,000 as cash in the bank. There is no need to produce a PAN card or any other documents. Similarly, if an amount up to Rs 50,000 in currency notes of Rs 2,000 were allowed to be exchanged, people can avoid standing in queues to some extent. Most of these notes are held by the middle class and above, and people who lead busy lives generally fall into this category. They have to waste their valuable time in the queue at the bank multiple times, which is not desirable.

Similarly, as the finance department has not issued clear instructions to the state treasuries, there is confusion regarding the acceptance of the notes. Treasury not accepting Rs 2000 notes has created a lot of trouble so a clear decision should be taken as soon as possible.

As this note is accepted in KSRTC, Beverages Corporation, etc., it should also be accepted in the treasury, because the note accepted in other institutions of the government has to ultimately reach the treasury only. The hardships faced by the people due to demonetization in 2016 are incalculable. Many people had to queue in banks for hours to exchange notes. There have also been reports of deaths of some of those queuing. Steps should be taken by the authorities to prevent the recurrence of such problems. The withdrawal of Rs 1,000 and Rs 500 notes had a major impact on the market. Experts say that the withdrawal of Rs 2000 will not create any such big impacts. Meanwhile, agriculture, small industries, and traders may be directly affected by the RBI decision. This decision may also cause gold prices to rise again. An unstable situation regarding notes is generally not good for the economic growth of the country.