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RBI asks banks to boost currency supply for farmers

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers

Press Trust of India  |  Mumbai 

People walk past the Reserve Bank of India (RBI) head office in Mumbai, India.Photo: Reuters
People walk past the Reserve Bank of India (RBI) head office in Mumbai, India.Photo: Reuters

The Reserve Bank of India on Friday nudged banks managing to engage district co-ordinators of state level bankers' committee to ensure fair and even flow of money to for their winter crop requirements in view of cash shortage post demonetisation.

To ensure adequate allocation of banknotes is made for rural branches, post offices and DCCBs, banks are advised to involve the district co-ordinators (Lead District Managers) functioning under state level bankers' committee in facilitating and planning distribution of currency from chests, said in a notification.

also said there is a perception that banks with are giving priority to their own branches to supply cash and asked them to quell the misinformation.

"These banks with are, therefore, advised to make visible efforts to dispel the perception of unequal allocation among other banks and their own branches," said.

Earlier, on November 22, in an advisory to banks had asked them to make cash available to for rabi crop season.

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers, that is Rs 10,000 crore a week.

During the planting season, which concludes generally by the end of December, will utilise its own cash credit limit of Rs 23,000 crore to disburse crop loans.

As these loans are given in cash, has asked banks with to ensure adequate cash supply to district co-operative and regional rural banks.

Adequate cash supply should also be ensured for rural branches of all commercial banks, stated. Bank branches in agricultural produce market committee are also to be supplied with enough cash to meet farmers' demand.

RBI asks banks to boost currency supply for farmers

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers
The Reserve Bank of India on Friday nudged banks managing to engage district co-ordinators of state level bankers' committee to ensure fair and even flow of money to for their winter crop requirements in view of cash shortage post demonetisation.

To ensure adequate allocation of banknotes is made for rural branches, post offices and DCCBs, banks are advised to involve the district co-ordinators (Lead District Managers) functioning under state level bankers' committee in facilitating and planning distribution of currency from chests, said in a notification.

also said there is a perception that banks with are giving priority to their own branches to supply cash and asked them to quell the misinformation.

"These banks with are, therefore, advised to make visible efforts to dispel the perception of unequal allocation among other banks and their own branches," said.

Earlier, on November 22, in an advisory to banks had asked them to make cash available to for rabi crop season.

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers, that is Rs 10,000 crore a week.

During the planting season, which concludes generally by the end of December, will utilise its own cash credit limit of Rs 23,000 crore to disburse crop loans.

As these loans are given in cash, has asked banks with to ensure adequate cash supply to district co-operative and regional rural banks.

Adequate cash supply should also be ensured for rural branches of all commercial banks, stated. Bank branches in agricultural produce market committee are also to be supplied with enough cash to meet farmers' demand.
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Business Standard
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RBI asks banks to boost currency supply for farmers

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers

The Reserve Bank of India on Friday nudged banks managing to engage district co-ordinators of state level bankers' committee to ensure fair and even flow of money to for their winter crop requirements in view of cash shortage post demonetisation.

To ensure adequate allocation of banknotes is made for rural branches, post offices and DCCBs, banks are advised to involve the district co-ordinators (Lead District Managers) functioning under state level bankers' committee in facilitating and planning distribution of currency from chests, said in a notification.

also said there is a perception that banks with are giving priority to their own branches to supply cash and asked them to quell the misinformation.

"These banks with are, therefore, advised to make visible efforts to dispel the perception of unequal allocation among other banks and their own branches," said.

Earlier, on November 22, in an advisory to banks had asked them to make cash available to for rabi crop season.

As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers, that is Rs 10,000 crore a week.

During the planting season, which concludes generally by the end of December, will utilise its own cash credit limit of Rs 23,000 crore to disburse crop loans.

As these loans are given in cash, has asked banks with to ensure adequate cash supply to district co-operative and regional rural banks.

Adequate cash supply should also be ensured for rural branches of all commercial banks, stated. Bank branches in agricultural produce market committee are also to be supplied with enough cash to meet farmers' demand.

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Business Standard
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