Business
Banks disbursing soiled notes, sprayed with perfume, insecticides
New Delhi, Nov 19: Battling an unprecedented cash crunch after the government spiked high-value currency notes, banks at various places have been receiving soiled Rs 100 notes for disbursal that were otherwise supposed to be dumped after being taken out of circulation years ago.
Many customers in Delhi complained to IANS that they received some of these soiled and almost mouldy currency notes that in the odd case even smelt bad.
A bank manager, who wished not to be named, told IANS: "The RBI is sending old 100 rupee notes stored for years but not destroyed, These notes smell. We are spraying them with perfumes and insecticides before disbursing them."
The manager said that a large number Rs 100 notes worth millions of rupees have been returned for circulation to narrow down the huge cash demand-supply gap after the November 8 demonetisation of 500 and 1,000 rupee notes -- which accounted for 86 per cent of the currency in circulation.
As a normal practice, such soiled and damaged notes are usually returned to banks and sent to RBI offices where they are put into shredder machines and ferried to dumping sites.
However, it appears that the central bank may not have dumped some of these notes in years and these have now come to the RBI's rescue in these times of a severe cash crunch.
Long queues outside banks and ATMs continued for the ninth day on Saturday with people jostling to get cash to meet their daily needs.
Although the Finance Ministry and the RBI insist that there are sufficient number of new Rs 2,000 and Rs 500 notes to replace the estimated Rs 14.5 lakh crore sucked out of the economy by the demonetisation, there is clear evidence of a shortage.
While some attribute this to logistical issues -- the problem of getting the new notes to bank branches across the country -- others have made calculations, based on the printing capacity of the four currency presses in the country, to contend that the demand-supply mismatch will take anywhere between six and nine months to bridge.
2 hours ago
Karnataka bypolls: Nikhil Kumaraswamy named NDA candidate from Channapatna Assembly seat
2 hours ago
Congress not to field candidates in UP Assembly bypolls, announces support for Samajwadi Party
2 hours ago
FM Sitharaman, World Bank President discuss issues related to private capital participation in Global Public Goods
2 hours ago
Large turnout for early voters in US swing state Georgia; focus on economy, people's rights
2 hours ago
19-Year-Old Sikh Woman Tragically Dies While Working at Walmart in Halifax, Canada
3 hours ago
OpenAI Names Indian-American Economist Dr. Aaron Chatterji as Its First Chief Economist
3 hours ago
We have long recognised and experienced Khalistani extremism, says Canadian MP Chandra Arya
3 hours ago
Canada: Dissident MPs call for Trudeau's resignation, deadline set for October 28
3 hours ago
US-India partnership vital for preserving peace in Indo-Pacific region: Former White House official Lisa Curtis
4 hours ago
Threats to U.S. Democracy: A Viewpoint
4 hours ago
Justice Siddaiah Rachaiah appointed permanent judge in Karnataka HC
5 hours ago
Alia Bhatt turns makeup artist, asks fans, “Kisko tutorial chahiye?”
5 hours ago
Dharmendra bonds with ‘diehard’ fan on holiday