Notification on demonitisation of certain denomination of currency notes
The Gazette Notification No. 2652 dated 8th November 2016 issued by Government of India mentions that the current currency notes of Rupees Five Hundred and Rupees One Thousand (“specified bank notes”) shall cease to be legal tender with effect from 9th November 2016. The notification provides for the manner and timelines in which the specified bank notes can be deposited/ exchanged.
We are in process of engaging with our bankers to try and facilitate our customers in making payment of their down-payment for new vehicle purchase as well as their installment dues so as to have minimum impact on our disbursal and collection activities. Our branch and field employee network would provide all possible support like educating the customer base to deposit their specified bank notes in banks, providing information on banking branches in the vicinity where they can get their notes exchanged and advising them on not taking any further receipt of similar notes.
While these activities shall cause administrative inconvenience, the same is expected to reduce over a period once the transition to new currency is established and the normal banking system resumes.