Reserve Bank of India on Tuesday instructed banks to ensure adequate cash supply to DCCBs and Regional Rural Banks to ensure sufficient flow of cash for crop loans to farmers. Earlier, the RBI had asked DCCBs and Regional Rural Banks to adhere to its guidelines. These cooperative banks, besides accepting deposits and providing production and marketing loans to their members, also provide financial help farmers. They also provide help to societies such as primary agricultural credit societies, handloom and handicrafts cooperative societies, the producers cooperative societies, salary earners’ cooperative societies consumers’ cooperative societies. The RBI has allowed DCC Banks to issue cash to their existing customers upto Rs 24,000/- per week up to November 24, 2016. However, the note exchange facility is not available with these banks.
PTI on Tuesday reported that people have got some respite as queues at bank branches to get valid notes have shortened and about 40 per cent of total ATMs have started dispensing new Rs 500 and Rs 2,000 notes. The situation, however, remains unimproved in rural and semi-urban areas. It’s been reported that branches in these areas are still facing shortage of cash. Meanwhile, the RBI has also asked banks to take stern action against officials indulging in fraudulent practices while exchanging or depositing the invalid currency. The central bank have also directed banks to remain prepared about the details of notes exchanged or deposited on short notice.