Bankers fear 😱 soiled Rs 100 notes may deepen prevailing cash crunch❗

  |   India News

Just like Rs 200 and Rs 2,000 notes, the Rs 100 denomination notes - especially the ones that can fit into ATM cassettes - are in short supply too, the bankers said.

"The RBI should introduce new Rs 100 denomination notes aggressively, otherwise there will be a tremendous pressure on the Rs 500 denomination notes in days ahead," a currency manager of a public sector bank said.

The bankers, however, said this was not sufficient because Rs 100 acted as a crucial change currency for the Rs 2,000 denomination notes (when the new Rs 500 notes were not easily available).

As a result, the total Rs 100 bank notes in circulation increased sharply to 19.3% of overall currency notes as against about 10% earlier - bulk of which were additions due to soiled notes.

Sure enough, the RBI data shows that it managed to dispose of just 4,898 million pieces of notes valued at Rs 50 or below in FY2016-17 against 7,774 million pieces in FY2015-16 and 6,454 million pieces, a year ago.

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