RBI urges public not to hoard, says enough cash available

In the wake of the demonetisation of high denomination notes, Reserve Bank of India (RBI) on Sunday appealed to citizens not to hoard cash and avoid going to bank branches repeatedly.

"The Reserve Bank assures members of the public that enough cash in small denominations is available at the Reserve Bank and other banks," the RBI said in a statement posted on its website.

"The Reserve Bank urges that public need not be anxious; need not come over to banks repeatedly to draw and hoard; Cash is available when they need it," it added.

Meanwhile, with a bank closure in some parts of the country due on Monday, thousands of people queued up outside banks across the country trying to change Rs 500 and Rs 1,000 banknotes the government demonetised on Tuesday in a move against black money.

Facing criticism from opposition groups for greatly inconveniencing ordinary citizens through this move, Prime Minister Narendra Modi on Sunday promised further steps to control corruption.

"We have taken a key step to help the honest citizens of India defeat the menace of black money," he said in a speech at a Goa government function near Panaji.

The Indian Banks' Association (IBA) has issued a statement saying Rs 30,000 crore of cash, including both lower denomination notes and Rs 2,000 currency notes, were disbursed in the last three days.

The IBA also said ATMs are being recalibrated to handle the new series of Rs 500 and Rs 2,000 denomination currency notes.

--IANS

bc/sm/dg