Scarcity of coins, notes of small denomination hits state economy
Source: Hueiyen News Service

Imphal, July 08 2012: Even though the government has taken up many developmental projects in different sectors, scarcity of coins and notes of small denomination has affected the state economy severely.

Surprisingly, no concerned authorities are paying any attention into the matter even if they are aware of it.

At present Manipur is facing scarcity of coins and small denominations of Rs 5, Rs 2 and Rs 1.Besides, one finds it hard to see any new notes of Rs 10 in the state, thereby suggesting the possible scarcity of the same in the near future.

While Manipur has been facing the problem for the last many years, there are plenty of such coins and small denomination currency notes in other states.

In the absence of coins and small denomination currency notes, one is forced to buy matches, sweets or chewing gums at shops, even if they don't them since there is no change to return at the time of buy anything something whose price is below Rs 10 .

In the oil pumps too, each consumer is losing Rs 1 or more everyday while refueling their vehicles due to lack of small denomination currency notes.

Such losses, on the side of consumers, are being witnessed in every market places and shops throughout the state.

When Hueiyen Lanpao contacted officials of some Banks in the state over this issue, it was learnt that all the coins and note of small denominations in the state are supposed to be issued through State Bank of India (SBI) and United Bank of India (UBI), which are the two chest banks of Reserve Bank of India (RBI) in Manipur.

Earlier, the two banks used to issue the small denominations to other banks in the state for public use.

However, after the two chest banks of RBI stopped procuring coins and notes of small denominations from RBI, the state has been facing scarcity of small denominations.

Even though the exact reason for not procuring small denomination currency notes from RBI by the two banks is not known, there are speculations that the two banks stopped bringing in such coins and denominations as it costs them higher charges as they are heavier than other denominations in terms of amount.

According to one Maibam Jadumani, while doing its business, the banks should not undermine its duties towards the people of a society.

It is very unfortunate for the two chest banks of RBI not to bring in coins and notes of small denominations in the state.

The two banks, in their quest to cut down expenditure, have given serious impact on the economy of the state and its people.

He further pointed out that it has become difficult to find coins and notes of Rs 1, Rs 2 and Rs 5 in the state today.

This not only result in consumers spending more money while buying things from shops, hotels or market.

It may seem to be not a major problem for a single consumer, the loss of collective amount from all the consumers in one day would be astronomical.

We may recall here that in the past, Manipur faced similar situation wherein torn currency notes of Rs 1 or Rs 2 or Rs 5 were in circulation.

But the problem was resolved with the help of a Non-Manipuri called Amrik Singh Pahwa.

Now scarcity of small denomination of currency notes has once again hit the state.

In such situation, departments concerned of the state government and other authorities concerned should take up certain actions to solve the problem before it is too late.

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