Lok Sabha Question No. 344 (STARRED), answered on 2016-12-09
Subject: Release of New Currency
Ministry: FINANCE
Asked by: SATYA PAL SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. 344* TO BE ANSWERED ON 9 TH DECEMBER 2016/18 TH AGRAHAYANA SAKA, 1938 RELEASE OF NEW CURRENCY

## 344*. SHRI SATYAPAL SINGH:

## QUESTION

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that post demonetisation 60 to 70 per cent of new currency notes are being released in the four Metros and only 30 to 40 per cent of these to the remaining cities and rural areas of the country;
- (c) whether the Government is aware that people living in rural areas have limited or no access to electronic mode of payments causing them greater inconvenience posed by cash shortage and if so, the details thereof; and
- (b) if so, the details thereof and the reasons therefor along with the comparative distribution of new currency in urban and rural areas;
- (d) the steps taken by the Government to release more new currency in the rural banks in order to mitigate the problems faced by the people living in rural areas?

## ANSWER

## THE FINANCE MINISTER IN THE MINISTRY OF FINANCE (SHRI ARUN JAITLEY)

(a) to (d): A statement is laid on the Table of the House.

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## Statement referred to in reply to Lok Sabha Starred Q. No. 344* to be answered on 09 th December, 2016 regarding Release of New Currency

Currency notes are supplied by RBI through currency chests maintained in the banks, keeping in mind the requirement in various areas and regions. Steps have been taken to ensure availability of cash in rural branches of Banks and 1.55 lakh Post Offices. The network of 1.2 lakh Banking Correspondents has also been activated with higher cash holding limits. Moreover, States have been requested to identify the rural pockets, if any, where availability of cash has been a problem and provide all support to the Banks and Post Offices to ensure the last mile distribution of notes through mobile banking vans and Banking Correspondents.

NABARD has made available Rs.21,000 crores limit to the District Central Cooperative Banks  (DCCBs)  through  State  Cooperative  Banks  for  Rabi  agricultural  operations, benefiting more than 40% of the small and marginal farmers. RBI and the Banks have been advised to make the required cash available to the DCCBs resulting in quick and unhindered flow of credit and required cash to the farmers. There are 30 crore RuPay Debit Cards which have been issued, including those issued to Jan Dhan Account holders. To facilitate  the  use  of  this  debit  card,  the  Banks  have  decided  to  waive  transaction charges up to 31st December, 2016. National Payments Corporation of India  has already waived switching charges for RuPay Cards.

The banks have been advised by the Reserve Bank of India to involve the District coordinators functioning under the State Level Bankers' Committee in facilitating/planning distribution  of  currency  from  the  currency  chests so  as  to  ensure adequate supply of currency to the rural branches, post offices, DCCBs etc.

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