Co-op banks seek fresh notes for Diwali in other states

Surat: With fresh currency notes in short supply ahead of Diwali, Gujarat’s urban cooperative banks are looking beyond the state to meet customer demand. Some banks have begun sending teams to other states to procure notes, while industry bodies have approached the Reserve Bank of India (RBI) seeking higher allocations, particularly of smaller denominations.

Cooperative banks have traditionally struggled to secure fresh notes during the festive season as most do not have their own currency chests and depend on nationalised banks for supplies. This year, however, the shortfall has become more acute, prompting the Gujarat Urban Cooperative Banks Federation (GUCBF) and the South Gujarat Cooperative Banks’ Association (SCOBA) to write to the RBI.

Jyotindra Mehta, chairman of GUCBF, told TOI that several urban cooperative banks had received barely 10% of the fresh currency they had indented for Diwali. Most of the notes supplied were in Rs 100 and Rs 500 denominations, while demand was considerably higher for Rs 10, Rs 20 and Rs 50 notes.

We have written to the issue department of the RBI to provide fresh currency to cater to Diwali festivities. Many UCBs (urban cooperative banks) were provided fresh currency amounting to just 10% of their indents. The majority of the notes are in denominations of Rs 100 and Rs 500, whereas demand is high for Rs 10, Rs 20 and Rs 50 notes.