Banks have sensed an opening in the lack of clarity on KYC requirements to add to their current and savings accounts. Individuals walking in to exchange Rs 2,000 notes were being urged by bank officials to open accounts at the branch and deposit the sum either in a savings account or as fixed deposit.

“It is an opportunity to pitch to the non-bank customers who are coming in to exchange Rs 2,000 notes to open an account with us. We have asked the branch officials at the help desks and the counters to enquire if an individual has an account with the bank and if not then appraise the individual of the benefits of an account with the bank,” an executive of SBI said on Tuesday.

While it announced to withdraw Rs 2,000 notes from circulation, the RBI did not saywhether an individual would have to carry any identification for note exchange.

While some banks such as SBI were not asking for any identification documents, The Telegraph found several instances on Tuesday where branch officials, both in public and private sector banks, were asking for IDs such as Aadhaar, driving licence, voter ID, Passport, PAN and NREGA card.

“It is better to keep a record of the individuals who are exchanging Rs 2,000 notes at the branch. How can I otherwise explain to the bank in case a dubious transaction is later found out?” a branch official of Punjab National Bank said.

HDFC Bank also was asking non bank customers to provide identification details for the exchange of bank notes.

For bank customers however, only the customer ID/account number is required.

Officials of the State Level Banker’s Committee said there was no KYC requirement for individuals who are looking to exchange Rs 2,000 notes. They said the exercise needs to be scrapped altogether.

“With the reduction in recruitment, bank officials are already overburdened and this additional requirement of providing identification to exchange Rs 2000 notes at branches is making both bank customers and officials suffer. In our view, the exchange process should be withdrawn and only deposits of Rs 2000 notes into accounts should be allowed,” said Rajen Nagar, president the All India Bank Employees’ Association.