RBI asks banks to supply at least 40 per cent of currency to rural areas
In a circular to banks on Tuesday, the RBI said that it had already implemented steps in November and December to ensure that rural areas receive bank notes commensurate with the requirements of rural population.
On Tuesday, the RBI said that with a view to ensure that at least 40 per cent bank notes are supplied to rural areas and to mitigate the issue in a more enduring manner, it has advised a few more steps to be undertaken by the banks maintaining currency chests.
The RBI, in its latest circular said that as the rural requirements could vary from district to district depending on variations in the rural and urban mix of each district in terms of relative shares in CASA deposits and number of deposit accounts, to facilitate a need based approach in this regard a certain percentage of allocation has been assigned to each district depending on the rural and urban mix.
It also said that chests should issue bank notes in denominations of rupees 500 and below and existing stock of other denominations notes below rupees 100 should be issued liberally.
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