RBI asks banks to increase supply of notes to rural branches

New Delhi: In order to supply more notes to currency-starved rural branches of the banks, the Reserve bank of India (RBI) has asked its lenders to increase issuance of fresh notes at these areas.

RBI Governor Urjit Patel
RBI Governor Urjit Patel.

The banks have been told to increase supply to regional rural banks, district cooperative central banks and commercial banks.

With a view to ensure that at least 40 percent bank notes are supplied to rural areas and to mitigate the issue in a more enduring manner, the banks have been asked to follow these measures.

The banks will also have to maintain chest slips and log a weekly summary at the close of business every Friday.

The banks chests should issue bank notes in denominations of Rs. 500 and below. In particular, the ATMs should be issued Rs. 500 and Rs. 100 notes and ATMs in the rural areas 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.