Banks refuses to accept pre-2005 50 & 100-rupee notes

500 note

BENGALURU, 5 Jan: Amidst problems arising over demonetisation, a new trouble has emerged as few banks in the city are now denying to accept Rs 50 and Rs 100 notes issued before 2005.

Although the Reserve Bank of India (RBI), in a notification, stipulated that the old currency of Rs 500 and Rs 1,000 notes could no longer be deposited in bank accounts unless the individual could prove she was not in the country between November 10 and December 30, the central bank has made no restrictions on accepting lower denomination no tes issued before 2005.

It is said that several shopkeepers, too, are refusing these notes, on the fear that they are no longer legal tender.

Raghunathan MR, a businessman who went to deposit money at the Majestic branch of a nationalized bank on Tuesday, remained shock after the teller returned all the pre-2005 Rs 50 and Rs 100 notes.

“Now, I don’t know what to do with them,” Raghunathan added. Clarifying that pre-2005 Rs 50 and Rs 100 notes were still legal, a senior RBI official said, “We are hearing that some banks are refusing to take these notes. This is wrong.”

Before the Centre demonetized all Rs 500 and Rs 1,000 notes on November 8, 2016, in a notification issued on January 23, 2014, RBI recalled all notes printed before 2005.

People were given a deadline of June 30, 2016 to exchange the old notes, though they could continue to deposit them in bank accounts.

“I think the banks have misunderstood the orders issued by the RBI. There are no restrictions on accepting lower denomination notes printed before 2005,” the RBI official said.

However, another RBI official stated that “The authenticity of the pre-2005 notes has to be verified at the counter. To avoid having to do this for all notes, I think bank officials are just refusing to accept them.”

General secretary of the Karnataka Bank Employees Federation, Ajay Manjarekar expressed that there was no question of skipping work. ” All employees follow the instructions issued by the RBI. If a few employees are refusing to abide by the rules, and not cooperating with the customers, it is wrong.Banks must follow all the rules,” Manjarekar said.

Deputy general manager of the State Level Bankers’ Committee, SM Desai lamented that the complaints would be probed. “People must not be inconvenienced.We will investigate the matter, and advise the banks,” Desai said.

 Wefornews Bureau

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