RBI asks banks to supply 40% of notes to rural areas

January 3, 2017

Mumbai, Jan 3: To mitigate hardships of poor and marginal farmers due to cash deficit following demonetisation, the Reserve Bank today directed banks to distribute at least 40 per cent of currency notes in rural areas.

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The 50-day exercise ended on December 30, but the cash supply situation is yet to ease in certain pockets. As a result, the government has not lifted the withdrawal ceiling of Rs 24,000 per week.

On observing that bank notes being supplied to rural areas is not commensurate with the local requirements, some steps have already been initiated, RBI said in a notification.

With a view to ensuring at least 40 per cent bank notes are supplied to rural areas and mitigating the issue in a more enduring manner, the banks maintaining currency chests are advised various steps, including liberal issuance of the existing stock of other denomination notes below Rs 100.

"Banks should advise their currency chests to step up issuance of fresh notes to rural branches of regional rural banks (RRBs), district central cooperative banks (DCCBs) and commercial banks, white label ATMs and post offices in rural areas on a priority basis which are considered as main rural channels of distribution," it said.

The directive came just a couple of days after Prime Minister Narendra Modi in his address to the nation on the eve of new year exhorted banks to make efforts to restore normalcy as fast as possible and should focus on rural areas.

"I have asked all officers concerned in the government to focus their attention on this task. They have especially been told to proactively resolve the problems in rural and remote areas," Modi had said.

According to the statement, banks should follow need-based approach for supply of currency as rural requirements could vary from district to district, depending on variations in the rural and urban mix of each district.

Each district has different CASA deposits shares and deposit accounts.
RBI has already mapped each district of every state and also made estimates of the requirement.

Accordingly, all chests operating in a district must issue bank notes to distribution channels in the indicated proportion, it said.

"The indicated proportion may be maintained on a weekly average basis at each chest level as it may be difficult to stick to the proportion on daily basis," it added.

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April 13,2024

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Mysuru, Apr 13: Karnataka Chief Minister Siddaramaiah said that Prime Minister Narendra Modi, who will be visiting Mysuru on Sunday, is welcome in the state.

"Let him come and go. He is the PM. But he should tell people about what he has done to the people of Karnataka. Let him answer about the injustice done by the Union Government towards the state in terms of giving tax share, not releasing drought relief funds yet and also about the unemployment issue," he said.

The Chief Minister was speaking to media people near his residence at Sharadadevi Nagar in Mysuru on Saturday.

Reacting to a question on BJP's slogan, 'Teesri Baar Modi Sarkar, Ab Ki Baar Char Sau Paar' (Modi government for the third time with over 400 seats), CM Siddaramaiah said, "This slogan is only a strategy to divert the minds of people. Because, according to me, the NDA will not get an absolute majority/simple majority this time in the Parliament elections."

"I.N.D.I.A. bloc and the parties which are against BJP will get a majority in the Lok Sabha polls," he said.

Responding to the statement of BJP leaders that 'even if B R Ambedkar comes, the Indian Constitution cannot be changed', Siddaramaiah said, "BJP is always against the Indian Constitution. Savarkar and the second Chief of RSS M S Golwalkar both opposed the Indian Constitution written by Baba Saheb B R Ambedkar on January 26, 1950."

"When BJP MP Ananth Kumar Hegde spoke about changing the Indian Constitution twice, why wasn't he punished? Why wasn't he suspended from the party? Why didn't they drop him from the cabinet?"

"Hegde was not given a ticket for the LS polls, as he had not done any work in the five years and was only active for the last three-four months of his term. The reason Hegde was not given a ticket was because BJP had realised that he would lose the elections, and not because of his statement related to the Constitution" the Chief Minister said.

Meanwhile, regarding the nabbing of the two key suspects in the Rameshwaram Cafe blast case in Bengaluru, Siddaramaiah said, "I thank the National Investigation Agency (NIA) and also the Karnataka police for tracing and arresting the accused in the case, in Kolkata."

"They will be brought to Bengaluru and further information related to the case will be known after their interrogation," he said.

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News Network
April 24,2024

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Campaigning for 14 Lok Sabha seats in Karnataka going to polls in the first phase on April 26 will come to an end on Wednesday evening.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for this round of voting in most of the southern and coastal districts.

It is a straight electoral contest between the ruling Congress and the BJP-Janata Dal (Secular) combine in the State.

While the Congress is contesting in all 14 seats, BJP has fielded nominees in 11, and its alliance partner JD(S) in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections will be held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

The intense campaigning for the past about a month saw Prime Minister Narendra Modi and Home Minister Amit Shah leading from the front for the BJP, holding rallies and roadshows. BJP President J P Nadda, some Union Ministers and Goa Chief Minister Pramod Sawant too pitched in.

Veteran BJP leader and former Chief Minister B S Yediyurappa and the party's state president B Y Vijayendra also campaigned extensively.

Congress president M Mallikarjun Kharge, senior leaders Rahul Gandhi and Priyanka Gandhi, Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar and Telangana Chief Minister A Revanth Reddy were among the prominent names who led the charge for the party.

And for the JD(S), it was the 90-year-old party patriarch and former Prime Minister H D Deve Gowda and former Chief Minister H D Kumaraswamy, who led the campaign.

Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central and Dakshina Kannada has the least number - nine.

Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket, erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, also from the BJP, and state Congress President Shivakumar's brother and MP D K Suresh from Bangalore Rural, are among the prominent candidates in the fray in the first phase.

The state has a total of 28 Lok Sabha segments. The remaining 14 constituencies, mostly in the northern districts, will go to polls on May seven.

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April 23,2024

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Mangaluru, Apr 23: As an outbreak of avian flu has been reported in some districts of neighbouring Kerala, the border areas of Karnataka, including Mangaluru, have been put on high alert, officials of the Karnataka Animal Husbandry department said.

At present, the situation in Kerala is being monitored before any action can be taken, they said.

“Our Kerala counterparts have assured us that the avian flu has been contained within Alappuzha district. However, loading, booking and carrying poultry and poultry products on trains and at railway stations are still under consideration (surveillance), the officials said.

Not only railways but also road transport ferrying chicken loads from Kerala to Mangaluru are under surveillance. Mangaluru, being one of the largest consumers of chicken from Kerala, has halted chicken procurement from Kerala-based suppliers.

Sudhakar Shetty, a market functionary, stated, “The animal husbandry department of Kerala has advised containment of avian flu within a few districts in Kerala. We are closely monitoring the situation.” Despite this, the market has not experienced significant fluctuations in supply yet, as local stocks have been adequate to meet the demand for the next few days.

Demand for chicken could fall for a few days due to a series of temple festivals in coastal areas, where many consumers refrain from consuming meat-based meals until Saturday. Nevertheless, Sunday could witness a change, as consumers may desire hot chicken curry for their Sunday meals, according to the local people.

As officials in the animal husbandry department in Dakshina Kannada have raised awareness in the market about avian flu in the neighbouring state, the question arises whether prices will fall if demand decreases.

“We do not want to contribute to the hysteria surrounding avian flu until our local stock falls below the level of demand,” said Aston D’Souza, a farm owner.

Dakshina Kannada also serves as a good market for suppliers from Shivamogga, Hassan, and Chikkamagaluru.

“In case supplies dwindle due to an unlikely prolonged shutdown of Kerala supplies, we can always purchase from those districts, albeit at a slightly higher cost than Kerala stock,” Shetty said.

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