In order to meet the demand for small currency, the Reserve Bank of India has joined hands with India Post and started distributing coins to offset any shortage, whether real or man-made, in certain cities.
After launching the pilot project in Mumbai recently, a project was launched at the General Post Office in Lucknow on Wednesday. Kicking off the retailing of coins of rupees one and two denominations from Lucknow, DPS Rathore, regional director of the RBI said that though the service is available at the RBI counters as well as in commercial banks, the common man is either not aware of this or these is out of his reach. “There certainly is a demand of this service among people and to address this, we have opened a new channel, wherein people can walk in at the post office and get the change.”
Agreeing to the fact that there is a scarcity of small currency in the market, Rathore however said it is more man-made than actual. “The faulty distribution system is to be blamed for the difficulty people are facing. With this scheme, we are sure the problem will subside.”
The demand for the service can be gauged by the fact that on the first day itself, retailing was to the tune of Rs 13,000. Says Vivek Kumar Daksh, chief postmaster Lucknow, “I have been informed that of those who came seeking coins were shopkeepers, who usually buy coins at prices above their face value. It is usually Rs 90 against 100. With this scheme, hoarders and commission making middlemen will be duly sidelined.”
Speaking to FE, Neelam Srivastava, chief postmaster general, UP circle said apart from the General Post Office in the state capital, the postal department will also open another counter at the chowk headquarter. Once the scheme gets off successfully here, it will be replicated in Kanpur, Allahabad, Agra, and Varanasi.