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Ahead of the kharif sowing season, Gujarat is facing a cash shortage as banks have started receiving lesser cash than required from the RBI. This has resulted in the rationing of cash disbursements at several banks in parts of Gujarat, mainly in the north.
Banking sources confirmed experiencing cash shortage at the currency chest level from where the disbursement of cash takes place to the bank branches.
There are about 257 currency chests under the Gujarat Region of the Reserve Bank of India (RBI), including chests for Union Territories of Diu, Daman and Dadra Nagar Haveli.
The Gujarat Urban Cooperative Banks Federation (GUCBF) has raised the concerns with the RBI. In its written representations to the RBI Governor and the Chief Minister, the federation has flagged the deteriorating situation in the State over the past fortnight and has sought urgent measures to normalise the supplies.
“It is true that banks (including public sector, private and co-operatives) in Gujarat are facing short supply of cash due to unknown reasons. We have represented through the federation to the RBI and top authorities. There is a significant drop in the cash supplies from (currency) chests,” said Jyotindra Mehta, Chairman, GUCBF.
The harvest of fennel and cumin seeds has begun in the North Gujarat region and there is cash requirement at the Agricultural Produce Market Committee (APMC) for making payments to farmers.
However, public sector bank officials have declined to press the panic button.
“There is enough cash available with ATMs and bank branches. There is definitely lesser supplies from the RBI but there is no need to panic,” said a top official of a public sector bank.
According to unofficial estimates by banking insiders, the currency chests in Gujarat are getting only 10 per cent of their weekly requirements of cash.
“There is going to be a damaging impact on the overall businesses and agriculture transactions. If not sorted out in time, this may cause rural distress and push businesses towards recession,” said Janak Raval, General Secretary of the Mahagujarat Bank Employees Association.
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