Panic rush over Rs 500 notes

8220;We are accepting, all the currency notes of Rs. 500 denomination, though with a little caution since there are rumours of fake currency notes in circulation,8221; a bank manager said.

The word going around in the city is that the Nagpur branch of RBI had directed the banks to stop accepting Rs 500 notes bearing a particular series 2CA and 5AC. Currency officer of the RBI, New Delhi, P. C. Kapoor, told The Indian Express that the Nagpur branch had only issued a caution following the recovery of fake currency notes of Rs. 500 by the Mumbai police.

8220;It was an all-India alert, but the question of not accepting Rs 500 notes does not arise,8221; Kapoor said. He said there are rumours also that the RBI had withdrawn from circulation old series of notes in denomination of Rs. 500. The RBI currency officer said the circulation of the old series of currency notes was not withdrawn and all notes, including the old series ones were in circulation.

But the most interesting aspect here has been the large inflow of Rs 500 notes into the banks, says M. C. Guaba, ban manager. 8220;The Rs 500 notes are coming into circulation following such rumours,8221; he said.

Another bank manager said the quantity of deposits in the form of Rs 500 currency notes has increased in the past few days. 8220;People are not taking any chances and the surge in Rs 500 notes continues,8221; an PSB official commented.