Source: News Bharati English03 Jan 2017 15:40:42
New Delhi, January 3: In order to supply more bank notes to currency-starved rural branches of banks, the RBI has asked lenders to increase issuance of fresh notes. The banks have been told to increase supply to regional rural banks, district cooperative central banks and commercial banks. RBI said that banks must supply at least 40% of currency to rural areas. In a statement, RBI said, “Banks should advise their currency chests to step up issuance of fresh notes to rural branches of RRBs, DCCBs and commercial banks, white Label ATMs in rural areas & post offices in rural areas on priority basis which are considered main rural channels of distribution.”Banks will also have to maintain chest slips and log a weekly summary at the close of business every Friday. Banks chests should issue bank notes in denominations of Rs 500 and below. In particular, ATMs should be issued Rs 500s and Rs 100s and among ATMs category, off-site ATMs should be allocated a higher proportion of cash as against on-site ATMs as they are more important in last mile currency, said the RBI note.
In a notification published on its website, the RBI said, "On observing that bank notes, being supplied to rural areas, at present, are not adequate with the requirements of rural population.” Hence banks are advised to level up the supply of currencies in proportionate manner in the ATMs where the distribution is at large scale, keep track of transactions, and should ensure supply to public on priority basis, lower denomination currencies should be issued through banks.”