Exchange houses refuse B2,000 bills, expats upset

Indian residents in Oman are encountering challenges in transactions with M2,000 currency notes, as exchange houses in the country refuse to accept these.

This follows a statement issued by Reserve Bank of India (RBI) saying the M2,000 bills will be withdrawn from circulation. The general public has until September 30 to deposit or exchange these notes. The RBI instructed banks to cease issuing M2,000 denomination banknotes with immediate effect. The bills, however, will continue to be legal tender till the specified date.

Confirming the decision of Oman’s exchange houses to not accept M2,000 bills, a senior official at Global Money Exchange, said, "Currently, we are not exchanging any M2,000 notes in compliance with Government of India instructions and are awaiting further information."

Expressing his disappointment over the exchange houses’ decision, Sulaiman Babu said, "I am not well-informed about bank rules and was unaware of this change. I recently returned from

India and have some Indian currency with me. I went to an exchange house in Mawalah, but they refused to accept the notes. I need the money for my daily expenses and left the place dejected."

According to another exchange house official, a solution to the current situation is eagerly awaited. "We aim to assist our valued customers and are working towards that."

The M2,000 bills were introduced by RBI in November 2016 as a measure to combat black money and counterfeit currency. These high-denomination notes were intended to replace the M500 and M1,000 bills which were demonetised at the time.

"The discontinuation of notes is often driven by several factors, including the prevention of counterfeit currency,” a bank official in Muscat explained. “Exchange houses, responsible for ensuring the authenticity of currencies, must exercise caution in accepting notes to safeguard their customers.”

He further explained that the relatively large size of the M2,000 bill compared to other currencies poses logistical challenges for money exchange houses in terms of storage and transportation. “Practical considerations like these have influenced their decision to refrain from accepting these high-denomination Indian currency notes.”