RBI sent Rs 805 crores to their AP chest at Vishakapatnam by Monday. From today this money will be distributed to public and private banks. The money would be first sent to Andhra Bank and State Banks of India; from there it will be further distributed to other banks based on orders from the central bank.
Few days ago in the bankers meeting, Rs 2000 crores was agreed to be sent to 13 districts of AP. This meeting occurred in the presence of AP Chief Minister N Chandrababu Naidu, but Central banks sent only Rs 805 crores. Andhra Pradesh labour employment statistics show that Agriculture plays a major role constituting 55%, while Industries constitute 10%, and remaining in services sector. Agriculture industry is purely cash based, and demonetization has put these common people in queues outside banks. Cost of agricultural products has decreased, and special appointed vegetable markets are not able to sell produce in time due to cashless economy. Cash is required for all transactions and this is the reason for Rs 2000 crore requirement. Read more news on RBI response to Demonetization.
Sources in RBI said Visakhapatnam district will get around Rs 150 crore and the neighbouring districts will together get around Rs 200 crore. Sources say that more than 30% of currency is in Rs 500 notes.