Divine help: Government, banks look to temple hundis for small-denomination notes

Divine help from the temple hundis is coming to ease the currency crunch.

The hundis of many temples are now being opened to bring in notes of smaller denomination and coins into circulation on request from the government and banks.

There has been severe cash crunch after the Centre withdrew ₹500 and ₹1,000 notes from November 9.

“We have asked temples to open hundis and send cash/coins to banks,’’ a senior official of endowments department here told BusinessLine .

The same is the case with Andhra Pradesh. Its Chief Minister, N Chandrababu Naidu, has asked the temples which are managed by the endowments departments and other trusts on Sunday to count and deposit the donations in banks.

Through pre-recorded phone calls, the CM has also been asking people not to hoard notes of smaller denominations and allow them to be circulated and switch over to digital payments.

According to a functionary of Varasiddhi Vinayaka Temple in Kanipakam, Andhra Pradesh, the temple hundis were opened on Saturday and ‘a good number’ of ₹100, ₹50, ₹20 and ₹10 notes, besides coins, were sent to banks.

“Generally, hundis are opened only at fixed intervals which are decided by the management of a temple. But this is an unscheduled opening in view of the crisis,’’ he said.

Temples maintain accounts in different banks depending on their location and it is learnt that bank managers have been asking temples to help them tide over the currency crunch.

“We are under pressure for smaller denomination notes. Customers are willing to take only ₹2,000 notes and are demanding that ₹100 and ₹50 notes be given in some proportion. Cash from hundis can be of help now,’’ MN Rao, an officer in Andhra Bank, said.

Some temples are also doing it voluntarily and are requesting the banks to send staff with counting machines for assistance and to collect the donations.

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