Hyderabad: The Telangana state government on Tuesday requested RBI to immediately send Rs 5,000-crore worth small denomination notes to the state for addressing the small note shortage.
Speaking to RBI officials, finance minister Etela Rajendra said that the state got Rs 17,500 crore out of Rs 4 lakh new notes issued till now.
Citing the state’s GDP, which is five per cent of the national GDP, he insisted that the state must get Rs 20,000 crore worth new notes. However, the amount that the state got in new notes is Rs 2,500 crore is less than what it ought to have received.
On top of it, Mr Rajendra pointed out, 96 per cent of the new notes sent to Telangana are of Rs 2000 denomination, which led to hoarding of small notes by people.
Explaining the gravity of the problem, the minister said shortage of small notes are allowing some persons to charging premium on small notes.
Claiming that about 30 lakh households in the state have no bank accounts, Mr Rajendra asked RBI to allow people who don’t have accounts to exchange old notes at banks. “Some people are charging 30 per cent commission for accepting old Rs 500 and Rs 1000 notes.”
Home and labour minister Naini Narasimha Reddy said labour are facing a lot issues due to Rs 2000 notes and they are unable to use them at most place as merchants are not ready give small notes.
