In an effort to ensure that sufficient coins and currency notes are in circulation this Pongal, the Reserve Bank of India, Chennai region, has instructed all banks to hold special camps to distribute coins and exchange currency notes.
Beginning Wednesday until the weekend, various bank branches have been advised to hold melas in public places and halls to enable customers to exchange old and mutilated currency notes and purchase coins. “We have asked the banks to also focus on providing currency notes of lower denomination to retail traders,” said an official.
Though notes of Re.1 and Rs. 2 are still of value, not many are still in circulation. RBI, Chennai region, is waiting for stock of 40 lakh pieces under the denomination of Re. 1, which are to be distributed across the State.
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At the RBI stall at the Tourism and Trade Fair that kicked off recently, various banks will take turns in providing services such as exchange of soiled and mutilated notes and coin distribution every week.
Those currency notes issued prior to 2005 with fewer security features can also be exchanged. Officials said nearly 150 million pieces of fresh currency notes and 76 million pieces of coins have been distributed in December. Of this, nearly 25 per cent has been pumped into Chennai and fringes.
Last month alone, 148 million pieces of soiled notes and pre-2005 currency notes were exchanged in the banks, an official added. Banks have been advised to continue the exchange of notes for coins regularly.
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Nearly 150 million fresh currency notes and 76 million coins have been distributed in December