Ahmedabad: 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.
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