Banks in Gujarat are facing acute shortage of cash following the RBI’s rationing in disbursement of cash.
Sources in the banking sector said cash shortage was faced by the banks in different parts of the State, especially in North Gujarat that too ahead of the kharif sowing season.
Banks are experiencing cash shortage at the level of currency chest, from where the disbursement of cash takes place to the bank branches in the State. There are about 257 currency chests under the Gujarat Region of the Reserve Bank of India (RBI) which includes chests for Union Territories of Diu, Daman and Dadra Nagar Haveli.
In a letter to RBI Gujarat Urban Cooperative Banks’ Federation (GUCBF) has raised the issue. Copies of the letter have been sent to the Governor of Gujarat and the Chief Minister.
According to the letter Federation the State based Banks were facing cash shortage for the past fortnight.
Gujarat Urban Cooperative Bank Federation’s chairman Jyotindra Mehta said that there have been sudden drop of supplies from currency chest. Due to cash shortage farmers are having problems as their payments from Agriculture Produce Market Committed are being delayed. Moreover disbursement of loans ahead of Kharif season would also affect.
Meanwhile Gujarat’s Deputy CM Nitin Patel gave assurance that cash supply would be normalised in the state and there was no need to worry.