No cash shortage, 55% notes going to rural areas: RBI deputy governor

JAIPUR: Reserve Bank of India (RBI) deputy governor S S Mundra has said that there is no shortage of cash in the country, barring some stray cases, and 55% currency was going to the rural areas. He was addressing the media at RBI regional office here on Monday.

“The situation may not be completely satisfactory, but it’s a question of a few more days,” he said. On ATMs not dispensing cash at some locations, Mundra said, “There are eight to10 big banks with 70%-80% of the ATM network. Out of these 85%-90% ATMs of four to five banks are operational while the percentage of operational ATMs of the other bank is less. These banks have been directed to improve their services.”

Mundra said the banks in Rajasthan have reported negative credit growth from December 2015 to December 2016 period. While deposits were up mainly due to demonetization, the creditdeposit ratio fell more sharply to 63%. “It is a matter of concern and I have asked the banks to improve it,” he said.

The state government has launched several schemes related to agriculture sector and the RBI has asked the bank officers to associate them with these schemes so that credit could be enhanced, he said. He also asked the banks to open branches in unbanked villages where population is 5000 or above. There are 972 villages with population of 5,000 and above in Rajasthan and 171 villages have no bank branches although work is underway to open the branches, he said.