Congress MP Manickam Tagore has raised concerns about the shortage of small denomination currency notes in the market, causing inconvenience to the public. He alleges that the Reserve Bank of India has stopped printing these notes to promote digital transactions, disproportionately impacting rural communities.
There have been persistent complaints about the shortage of small denomination notes of 10, 20 and 50 rupees in the market. Now, news about this has been published and has created a stir. Congress MP Manickam Tagore raised a question about the shortage of small notes in the market and accused the Reserve Bank of India of stopping printing these notes. In a letter written by Tagore to Finance Minister Nirmala Sitharaman, he has mentioned about a severe shortage of these notes in the market. Due to this, poor people living in rural and urban areas are facing various difficulties.
He has also urged the Finance Minister to take immediate action to address the shortage of small denomination currency notes. It is noteworthy that the share of Rs 500 notes in the total currency in the financial year 2023-24 was 86.5 percent till March 2024. The Rs 500 denomination was the highest at 5.16 lakh notes while the Rs 10 notes was at second places with 2.49 lakh as of March 31, 2024, as per data shared in an annual report.. However, there are frequent complaints about shortage of small notes.
The Reserve Bank of India (RBI) has spent Rs 5,101 crore on printing notes in the financial year 2023-24. At the same time, a year ago in the same period, i.e. in 2022-23, the Reserve Bank spent Rs 4,682 crore on printing notes. In his letter to the Finance Minister, Manickam Tagore said, "The severe shortage of Rs 10, 20 and Rs 50 denomination currency notes has caused immense inconvenience and hardship…While the push for digital payments is understandable, the move disproportionately affects those without access to digital payment infrastructure, particularly in rural areas".
Tagore wrote in the letter that there is information suggesting that the Reserve Bank of India (RBI) has stopped printing these notes to promote UPI and cashless transactions. While the effort to promote digital payments is understandable, he said the move to stop printing small notes for this purpose is affecting those who do not have access to digital payment infrastructure, especially in rural areas. Tagore wrote that the government's decision violates citizens' fundamental right to access currency.
Small notes are essential for daily transactions. Due to their shortage, small traders, street vendors and daily wage earners, who rely heavily on cash transactions, face many difficulties. Finance Minister Nirmala Sitharaman has directed the Reserve Bank of India to print and distribute small denomination currency notes. She said that sufficient amount of these notes should be made available to meet the needs of the public.