The Indian Bank has decided to stop dispensing Rs 2,000 notes at its ATMs with the bank advising all its branches to immediately stop loading the pink notes at its dispensers. The Indian Bank has said that customers found it hard to use the note at the retail counters and other outlets.
A report by Business Standard said that the Indian Bank had issued a circular on 17 February stating that cash dispensation from Rs 2,000 currency cassettes would be disabled at all ATMs and cash recyclers on 1 March, 2020.
The bank said, “Customers are coming to branches to exchange the Rs 2,000 currency notes withdrawn from ATMs, with low-value denomination notes, which is defeating the very purpose of migrating the customers to alternative delivery channels.”
Indian Bank, according to another report by New Indian Express said that it will load only Rs 200 notes instead of Rs 2,000 in the currency cassettes.
The development has come as a huge setback to Prime Minister Narendra Modi, who controversially announced the note ban on old Rs 500 and Rs 1,000 notes in November 2016 by replacing them with new Rs 500 and Rs 2,000 notes. The move, according to him, was to counter corruption.
However, the introduction of Rs 2,000 notes has caused a lot of discomfort to customers, who have found it hard to use the note at retail outlets and elsewhere.
Many felt that the decision to stop dispensing Rs 2,000 notes by the Indian Bank was also due to the fact that the Reserve Bank of India had stopped printing the high-value currency notes. The RBI had last year said that it stopped the printing due to security reasons.