40% of all notes must go to rural areas, RBI tells banks
Reserve Bank of India (RBI) on Tuesday told banks to ensure that at least 40% of bank notes must go to rural areas.
RBI said, "On observing that bank notes, being supplied to rural areas, at present, are not commensurate with the requirements of rural population, some steps have already been initiated."
It said, "Banks should advise their currency chests to step up issuance of fresh notes to rural branches of RRBs, DCCBs and commercial banks, White Label ATMs in rural areas and post offices in rural areas on priority basis which are considered main rural channels of distribution."
RBI said, "Chests should issue bank notes in denominations of Rs 500 and below. In particular ATMs, including WLAOs, may be issued Rs 500s and Rs 100s and among ATMs category, Off-site ATMs should be allocated higher proportion of cash as against on site ATMs as they are more important in last mile currency connectivity."