Banks Asked To Supply 40% New Currency In Rural Areas

09 Jan 2017, 09:09 AM IST

Banks have been advised to issue notes in denominations of Rs 500 and below.

Banks have been asked to increase the supply on new currency notes to their rural branches.
Now, Regional Rural Banks, District Cooperative Banks, commercial banks, white label ATMs and Post Offices will have to be provided cash on a priority basis.
Among rural branches of the banks, the proportion of new currency has to be distributed based on the guidance issued by the RBI for each district.
The bank chests will have to report to the RBI every week the amount of new currency issued at each rural branch.
Instead of Rs 2,000 currency notes, banks have been advised to issue notes in denominations of Rs 500 and below.
Rural bank branches have been advised to distribute existing stock of other denominations notes below Rs 100 should liberally.
Banks have also been advised to obtain supply of coins from the Reserve Bank of India for distribution to public on a priority basis.