Public sector Indian Bank has decided to stop loading its ATMs with Rs 2000 notes from March 1 next.
As per reports, the bank has taken this step as a customer friendly move.
Indian Bank will now load more notes of Rs 200 in its ATMs in place of Rs 2000 notes.
A bank official said that most of its customers come into the bank branches after withdrawing cash from the ATMs in order to exchange Rs 2000 notes for notes of smaller denomination.
The official also said that this step of the customers had just overcrowded the bank branches.
In order to avoid over crowding , the bank has decided to stop loading Rs 2000 notes in its ATMs.
In a circular issued by the bank, according to Business Standard, the reason cited for the removal of Rs 2,000 notes was that its purpose had been defeated.
“Customers are coming to branches to exchange the Rs 2,000 currency notes withdrawn from ATMs, with low-value denomination notes, which is defeating the very purpose of migrating the customers to alternative delivery channels,” the circular said.
However, the Indian Bank’s move is not followed by other public and private sector banks.