28.1 C
Sunday, June 11, 2023

Cash management service firms put on alert | India News – Times of India

Must read

CHENNAI: Banks have alerted cash management service companies to keep a vigil on collection of Rs 2,000 from retailers and report any aberrations to the financial institutions. Retail cash management service firms act as a bridge between banks and retailers, who pick up cash from the latter and deposit with the banks.
The development comes in the wake of RBI announcing their withdrawal from circulation, though the Rs 2,000 banknotes will continue to be a legal tender.
South Indian Bank’s CGM (HR & operations) Anto George T said the bank has very limited cash pick-up services. “However, all our branches and agencies have been asked to exercise prudence in dealing with transactions related to withdrawal of Rs 2,000 banknotes. It may be noted that we have not seen any aberrations in our bank till now,” George added.
Sources in the retail cash management service sector, who are privy to the developments said, there was no specific direction from the banks in this regard, but an alert has been given to report any such spike in Rs 2,000 denomination notes collected from retailers to the banks.
Meanwhile, All India Bank Employees’ Association (AIBEA) general secretary C H Venkatachalam said, none can deny the right of individuals or institutions from depositing the Rs 2,000 denomination currencies to banks because the RBI has announced that it will continue to a legal tender. “But, banks can alert the RBI in the event of any unusual huge remittances of Rs 2,000 denomination banknote from any particular source.”
The RBI had said 89% of the Rs 2,000 banknotes were issued prior to March 2017 and are at the end of their estimated lifespan of 4-5 years.

Source link

More articles


Please enter your comment!
Please enter your name here

Latest article