State Bank of India today said it has started dispensing new Rs 500 currency note from today in Tamil Nadu.
Meanwhile, people thronged banks across the state to exchange their old notes.
The Centre had mandated that old notes Rs 500 and Rs 1000 would be accepted at fuel outlets, and for payment of utility bills including electricity bills till November 24.
As the deadline ended today, people rushed to banks to exchange their old notes.
Apparently owing to currency shortage, customers at some bank branches were requested to deposit money in their accounts and withdraw it later, instead of exchanging the notes. Some other banks allowed exchange of old currencies.
SBI Chairperson Arundhati Bhattacharya said the new Rs 500 notes are being dispensed from today.
"The new Rs 500 notes have just started coming (from RBI). Chennai will be the first to receive...Then we will expand it to other regions," she told reporters in Coimbatore.
Meanwhile, Bank Employees Federation of India said it would take at least five to six months to have the new Rs 500 notes in circulation to meet the current demand.
"The government has set up printing presses in West Bengal and Karnataka for supply of new currencies to the southern region. It will take at least five to six months to have the new Rs 500 notes in circulation to meet the current demand," Federation's Tamil Nadu Unit General Secretary, C P Krishnan told reporters in Chennai.
Yesterday, reports said customers who visited the private sector Karur Vysya Bank's branches in Salem had displayed the new Rs 500 notes to the media that was released to the bank.
Tamil Nadu Petroleum Dealer's Association said it had learnt that All India Motor Transport Congress had requested the Centre to provide extension of time to accept old currencies at fuel stations after November 24.
"We are expecting a reply from the Centre on extension of time," Association Vice President K Suresh Kumar told PTI.
To ease the situation, customers coming to fill fuel were being either encouraged to make card payments or give cash in denomination of Rs 100 notes, he added.
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