RBI asks banks to provide more money to rural areas

Photo of logo of Reserve Bank of India.

Mumbai: The Reserve Bank of India (RBI) today asked all banks to provide minimum of 40 percent cash to the rural areas, to ease problem of poor and farmers that was due to currency demonetization.

According to RBI, the 50 days period of depositing old currency notes has recently ended in December 30th, but still supplying of cash situation in rural areas is yet ease in certain villages.

This is the reason that the government has not lifted the withdrawal upper limit of Rs 24,000 per week in certain villages.

RBI said in a notification, after observing that banks notes supplied to the rural areas is not appropriate with the local requirement, so the government has decided to take some steps to ease situation in these areas.

Read:- Samsung registers big revenue of Rs 34,300 cr, stands tall in Indian market

Keeping this point in view, the banks has been guided by the RBI to ensure at least 40 percent banks notes should be supplied in the rural areas so that issues related to the shorted of currency can be sorted out.

The banks have to maintain currency chests were advised various steps, including liberal issuance of the existing stock of the other denomination notes below Rs 100.

Read:- Check out the first look of Whatsapp Business app!