Banks reject pre-2005 50 & 100-rupee notes.

BENGALURU: Adding to the confusion prevailing over depositing old notes, a few banks in the city are now refusing to accept Rs 50 and Rs 100 notes issued before 2005.

Although the Reserve Bank of India (RBI), in a notification, stipulated that the demonetized 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 imposed no restrictions on accepting lower denomination no tes issued before 2005.

A few shopkeepers, too, are refusing these notes, thinking they are no longer legal tender. Raghunathan MR, a busi nessman who went to deposit money at the Majestic branch of a nationalized bank on Tuesday, received a rude shock when 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. Citizens were given time till 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 said, "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 said that there was no question of skipping work. " All employees follow the instructions issued by the RBI. If a few em ployees 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 said the complaints would be looked into. "People must not be inconvenienced.We will look into the cases, and advise the banks," Desai said.