More cash woes in offing: Banks will not swap notes of other-bank customers; senior citizens exempted

Indian bank Association on Friday said that on Saturday only senior citizen will be allowed to exchange notes of old notes of Rs 500 and Rs 1,000, while banks will be open but they will only exchange notes of their own customers. Other-banks customers will not be allowed to swap Rs 1000 and Rs500 notes.  

"Banks on Saturday won't be doing exchange of notes at bank branches, only senior citizen can exchange their notes, however, all other services at banks will be operational," said Indian Bank Association, Chairperson Rajiv Rishi.

The decision to halt exchange of currency on Saturday has been made so that banks can complete the pending work.

On taking on impact of using indelible ink he said,  "Using indelible ink reduced queues substantially, it has come down to 40% of what it was initially."

Earlier in the day, however, dispelling reports that government might stop exchange of old currency notes, ANI on Friday tweeted, “As of now there is no proposal to stop exchange of old currency notes, Official sources.”

The buzz was created after the initial reports that government might halt exchange of old currency notes, that lead to more chaos and apprehensions about currency exchange. In a surprise to public and financial system alike, PM Modi on November 8 announced a ban on the currency notes of Rs 500 and Rs 1000 denominations to crackdown on the rampant black money practices and fake currency racket.