Banks, customers face shortage of Rs.500, Rs.2,000 notes

Banks, customers face shortage of Rs.500, Rs.2,000 notes

December 2, 2017

Mysuru: The new Rs.2,000 and Rs.500 currency notes that was introduced after the Central Government introduced demonetisation more than a year ago, is in short supply in banks. When people go to draw a huge sums from the banks, instead of Rs.2,000 and Rs.500, mostly Rs.100 and lesser denomination notes are being given.

The only answer the banks are giving to the customers is that their requirements are not being met. As a result, the public are in confusion, which is leading to speculations.

Lead Bank Manager K.N. Shivalingaiah, speaking to Star of Mysore this morning, said: “We do not have sufficient supply of notes of Rs.2,000 and Rs.500 from Reserve Bank of India (RBI). Since four to five months we have been indenting for this currency to the RBI. But they are not fulfilling our requirements.”

He said that as a result, the money is not being adequately replenished in the ATMs. “We cannot fill only Rs.100 and smaller denomination notes in the ATMs. This will create problems when people try to draw sums above Rs.10,000. Hence, the higher denomination notes are required. However, due to shortage, in many ATMs, the moment money is filled, it disappears because people withdraw in large numbers,” he said.

Asked about the new Rs.200 and Rs.50 currency notes released into the market about two months ago, Shivalingaiah said, “There is no remittance of Rs.200 notes into the currency chest in Mysuru. As a result, it is not seen in circulation here. If at all if we see a few Rs.200 notes, it is because people who have gone to Bengaluru might have got it.”

According to a SBI Manager, who did not wish to be named, there is shortage of high denominations notes because of hoarding of Rs.500 and Rs.2000 notes by a few people. “Once money is hoarded and it does not come back into circulation then the problem begins. We have been demanding from the currency chest for more money but the RBI is not supplying and asking us to take Rs.100 and Rs.50 currency,” he said.

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Demonetisation introduced to fight black money: On Nov. 8, 2016, Rs.1000 and Rs.500 notes were demonetised in order to curb black money, corruption, fake notes and terrorism. Prime Minister Narendra Modi’s move shook black marketers and the ordinary public was confused. Later, on the instructions of RBI, people deposited the Rs.500 and Rs.1000 currency notes in the banks.

Pro and anti opinions were expressed about the move by the Central Government. Many had to face enormous problems in performing weddings of their children. A few people also died standing in queues to withdraw money from ATMs. There were a few protests against demonetisation. However, there was complete support for PM Modi from the ordinary people for his stand on fighting corruption. After four or five months things started returning to normalcy. The RBI step-by-step started easing the problems by releasing more money into the market.

Confusion again: One year after demonetisation of notes and circulation of new currencies, looks like people are once again seeing shortage of these notes. The circulation of Rs.2,000 and Rs.500 notes is going down.

When people ask for higher denominations they get the reply that there is no supply. In fact, a few banks have also put up boards announcing the shortage of Rs.2,000 and Rs.500 notes, said a few customers.

What is the mystery?: What is the reason behind the shortage just after a year of demonetisation? This is the question bothering the public. People are wondering if the Modi Government is going for one more demonetisation. Are there plans to ban the high currency notes again, are the question being asked. There are few reasons seen to replenish these arguments. RBI is not fulfilling the required demand in the banks for high currency notes. For example, if the banks indent for Rs. 2 crore worth currency only Rs.50 lakh is being supplied. Added to this, the printing of Rs.2000 and Rs.500 notes is reduced, according to sources in RBI.

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Is the money in black marketers hands?: After demonetisation, black marketers were flummoxed. They tried all means to convert black money into white. A few of them were also caught. However, it looks like it was not for long and they seem to have come back with a bang. It is said that once again they are hoarding the new high currency notes. Hence, the money released from the banks is not going back into the banks. As a result, the banks are not able to fulfil the demands of the public. Due to the hoarding and insufficient supply, there is shortage of high value notes.

Cash shortage impact: Demonetisation had a huge impact on politics. The Opposition Parties in the four States that went to election after demonetisation were severely impacted due to cash shortage, it is being said. Presently elections are being held in Gujarat. In a few months, even Karnataka will go to polls. In the light of all this and fearing that politicians might illegally hoard money, the printing of high currency and its circulation is being limited, are the talks doing the rounds. The public who are closely watching all the developments are coming to their own conclusions.


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