RBI Faces Heat Over New Currency Note Shortage in South Gujarat

SURAT : With Diwali approaching, South Gujarat’s cooperative banks are staring at a severe shortage of fresh currency notes, with reports suggesting that banks have received barely 10% of the...

SCOBA has submitted a representation to the RBI Regional Director in Ahmedabad, seeking adequate supplies of new currency notes to all cooperative banks across South Gujarat before the festival. The annual demand for fresh currency notes during Diwali is estimated at approximately ₹100 crore.

SCOBA President Gautam U. Vyas and former President Mukesh N. Gajjar pointed out that new notes hold special religious, cultural and commercial significance during Diwali. From Lakshmi Pujan and festive gifting to employee bonuses, traders and members of the public traditionally depend on banks for fresh currency.

The association has urged the RBI to ensure timely distribution, assuring that cooperative banks will follow all prescribed guidelines while issuing the notes.

However, bankers have raised another longstanding concern over the currency distribution mechanism. Despite Surat having currency chest facilities operated by cooperative and private banks, institutions are reportedly required to collect fresh currency notes from Ahmedabad.