The Reserve Bank of India (RBI) said on Friday evening that Rs 2,000 notes would be phased out of circulation after September 30.
The unexpected development caught citizens off guard, leading them to hurriedly visit fuel stations to utilise these notes for filling up their vehicles with diesel and petrol. Pump operators reported the collection of more than 100 Rs 2,000 notes at various stations across the city.
The RBI has appealed to citizens to exchange their Rs 2,000 notes by September 30, directing banks to accept these notes from account holders and deposit them in the RBI account without re-circulating them. A four-month deadline has been provided for the exchange process. However, rumours spread in the evening that the bank would exchange 10 notes of Rs 2,000 at once for account holders, leading to confusion among the public. It is important to note that the Rs 2,000 notes will continue to be valid for the next four months, allowing individuals to withdraw their remaining balance in these denominations.
Fuel station operators reported a surge in deposits of Rs 2,000 notes, with 4-5 notes being collected at some pumps within an hour on Friday. Many individuals rushed to purchase diesel, and petrol, or fill their CNG tanks. The Petrol Pump Association confirmed that over 100 Rs 2,000 notes had accumulated across all stations. They also mentioned that fresh circulation of Rs 2,000 notes is expected in the coming week.
"Now, at least the government should admit that it was wrong to introduce Rs 2,000 notes. This is likely to erode confidence in the currency itself. Now, again people will panic. Banks need to be equipped to exchange notes. Jan Dhan accounts are likely to be used for transactions. The government should take necessary precautions," said Devidas Tuljapurkar, general secretary, Maharashtra State Bank Employees Federation.