Eatala seeks Rs 5000 cr in small denomination

  • Punishment for bankers diverting new notes

Hyderabad: Expressing shock over diversion of thousands of crores of Rs 2000 notes by some vested interests, Telangana Finance Minister Eatala Rajender has attributed it to the bank officials colluding with influential people.

Since hoarding of the new currency was causing serious problem for the people, the RBI should punish those involved in such malpractices, he said and demanded that RBI pump in at least Rs 5,000 crores in small denomination to Telangana State to overcome the prevailing currency problem.

Addressing a bankers meeting here on Tuesday, Rajender said the Telangana State was facing acute shortage of currency in small denominations due to collusion of bank officials. He demanded that such bank officials should be punished with an iron hand.

Rajender said out of Rs 20,000 crores, Telangana State has received so far, 96 per cent or Rs 17,500 crores was of Rs 2000 denomination and only 4 per cent of low denomination. This has compounded the problems of the people to get small change in open market. At the same time, the banks and ATMs are not able to cater to the needs of people lining up for hours, he deplored.

Since Telangana State was favoring cashless transactions, it is imperative that the Centre and RBI should cooperate to help it tide over the current small notes crisis, he said. As part of cashless transactions drive followed by Chief Minister K Chandrasekhar Rao, Siddipet has turned into a cashless town and efforts are being made to ensure that the people make use of digital transactions. About 83.37 crore families have bank accounts (including active and inactive) in the State, he said adding that about 30 lakh families are still to get bank accounts.

Union Labour Minister Bandaru Dattatreya and Home Minister Nayani Narsimha Reddy, RBI and other officials were present at the meet. –NSS

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