Multiple bank transactions stopped in Patiala

The banks in the city have stopped multiple transactions on exchanging scrapped Rs 500 and Rs 1,000 banknotes after noticing that people were visiting banks time and again to replace them.

The banks in the city have stopped multiple transactions on exchanging scrapped Rs 500 and Rs 1,000 banknotes after noticing that people were visiting banks time and again to replace them.

Customers depositing cash at the State Bank of India branch on the Mall Road on Sunday. (HT Photo)

On Saturday, bank branches in the city began maintaining online record of people seeking replacement of their scrapped currency. As a result, currency exchange forms the customers, who had already furnished the identity proof for exchange, were rejected on Sunday.

However, bankers said that the exchange system still has loopholes. For instance, the system will not reject multiple exchanges if customers use different identity proof for every transaction.

Further, there is a possibility that people get their scrapped notes exchanged from other banks on the same ID proof since there is so far no interconnectivity of exchange data between banks.