There is a shortage of small-denomination currency notes in India, and now the All-India Reserve Bank Employees Association (AIRBEA) has raised serious concerns about the severe shortage of small-denomination currency notes across the country. In a letter to the Deputy Governor of the Reserve Bank of India (RBI), AIRBEA General Secretary Samir Ghosh said that many regions—especially semi-urban and rural areas—are struggling to access ₹10, ₹20, and ₹50 currency notes.
According to the association, the shortage is occurring at a time when cash usage among the public is increasing again despite the growing shift toward digital payments. Ghosh called the situation “unfortunate” and said that immediate action from the RBI is essential.
RBI urged to take corrective steps
AIRBEA has requested the RBI to urgently release more small-denomination notes through both commercial bank branches and RBI’s own counters. The association also suggested that the RBI increase the circulation of small-denomination coins through various distribution channels.
AIRBEA further recommended that RBI should revive its earlier practice of organising “coin melas” — special events where coins are distributed in large quantities. According to AIRBEA, these melas should be held not only in cities but also in smaller towns and rural areas, in coordination with panchayats, cooperatives, Regional Rural Banks, and self-help groups.
Digital transactions cannot fully replace cash
While RBI has promoted digital transactions to reduce dependence on cash and discourage the use of counterfeit currency, AIRBEA stressed that issuing adequate currency notes is still one of the core responsibilities of the Central Bank. Digital payments help, but a large part of India still relies heavily on physical cash for daily needs, especially in rural regions.
ATMs provide no relief
AIRBEA highlighted that there is no shortage of higher-denomination notes such as ₹100, ₹200, and ₹500. However, the real problem is with smaller denominations, which are almost unavailable. ATMs dispense only higher-value notes and have no option for small denominations. Even many bank branches say they are unable to provide ₹10, ₹20, or ₹50 notes, which are essential for everyday small transactions.
Public complaints rising
Social media platforms and newspapers are full of complaints from people who are finding it difficult to get small currency notes. The letter pointed out that although the RBI had earlier considered replacing small-denomination notes with coins due to their long life, metal resources in the country are limited.
As a result, people are now being forced to buy small-denomination notes from illegal vendors at a premium, which is causing hardship for common citizens. Ghosh urged the RBI to take quick and effective steps to resolve the shortage.
-
-
-
-
-
-
-
-
-
-
-
-
