Indian Bank to Stop Using Rs 2,000 Notes in ATMs

Published on February 27, 2020
Current context: Indian Bank has started dispensing more of RS 500 notes instead of Rs 2,000 denomination notes for a gradual phase out of the high denomination currency.
Indian Bank to Stop Using Rs 2,000 Notes in ATMs 
  • State-owned Indian Bank has announced that it has decided to stop using Rs 2,000 notes in all their ATMs.
  • According to a circular issued by the lender’s digital banking division on 17th February 2020, cash dispensation from Rs 2,000 currency cassettes would be disabled at all ATMs and cash recyclers on March 1, 2020.
  • The bank has decided to use Rs 500 denominated notes instead of Rs 2000 notes on its own, as there has been no dictate from the Finance Ministry for the same.
  • The move is taken to prevent hoarding of the high-value currency (and thus, curb black money) and for the customer ease as they found it hard to exchange those in retail outlets and other places.
  • In an RTI response in 2019, the Reserve Bank of India (RBI) had said that the central bank had stopped printing Rs 2,000 denomination currency notes.
  • As per the RBI data, 3,542.991 million notes of Rs 2,000 denomination were printed during 2016-17 and only 111.507 million notes of Rs 2,000 were produced in 2017-18.
  • Indian Bank Headquarter: Chennai
  • CEO: Padmaja Chunduru

Question: 

Q.1 Which Bank has recently announced to stop the cash dispensation of Rs 2,000 currency note from its ATMs from 1st March 2020?
a. Indian Bank
b. HDFC
c. State Bank of India
d. Bank of India
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