Telangana News

Reserve Bank of India (RBI) informed the Telangana government that it would get its share of a new currency to the tune of Rs 2,000 crore by Monday and the money has been dispatched. A senior official of the state government said, "The chief minister spoke with senior RBI officials and requested Rs 500 and Rs 100 denomination notes in place of Rs 2,000 notes."

According to the RBI officials, the trucks loaded with the currency will reach Hyderabad, Karimnagar and Warangal on Monday. Not only to Telangana, RBI also sent to AP Rs 2,000 crores in the similar denominations.

Earlier, the Telangana government officials informed RBI that it faced serious problems in rural areas, where the farmers are struggling to distribute money to agricultural labor. It also detailed the problems faced by self help groups and anganwadis which are supervising the midday meal programme for over 22 lakh students.

Based on its requests and pressure exerted on the union finance ministry, TRS government is hoping for an early supply of lower denomination notes. RBI officials told that remittance of Rs 1,000 crores will comprise smaller denomination notes like Rs 500 and Rs 100.

"Fresh remittance might not solve the problem yet because alternative forms of payment (read cashless) haven't picked up as much as it was expected to," said an RBI official.

Since demonetization, 18,000 new machines have been put to use, but the demand is for 33000 swiping machines from banks. "The vendors are not in a position to supply the machines at present. It may take some time," said V Thyagarajan, chairman, state-level bankers' committee.