No Change! Shortage Of Rs 10, Rs 20, Rs 50 Notes Hits Gujarat Villages Hard; AIRBEA Calls For RBI Help

A shortage of Rs 10, Rs 20 and Rs 50 notes is disrupting daily cash transactions in Gujarat, prompting RBI employees to seek urgent corrective action.

It has also proposed reviving initiatives to encourage the use of coins, including the organisation of coin distribution fairs.

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A growing shortage of small-denomination currency has begun to disrupt everyday life in Gujarat and several other parts of the country, with rural areas facing the brunt of the problem. Notes of Rs 10, Rs 20 and Rs 50 have become increasingly hard to obtain, complicating routine cash transactions and raising concerns among banking employees and the public alike.

The All India Reserve Bank Employees Association (AIRBEA) has flagged the issue, warning that the scarcity of smaller notes is no longer an isolated inconvenience but a widespread challenge affecting both cities and villages. According to the association, the lack of these denominations is creating hurdles for ordinary citizens who depend on cash for daily expenses.

Union Flags Issue With RBI Leadership

In response to the worsening situation, AIRBEA has formally approached the Reserve Bank of India. The employees’ body sent a detailed letter to T. Ravi Shankar, Deputy Governor overseeing the RBI’s Currency Management Department, highlighting the gravity of the shortage.

The communication points out that while higher-value notes such as ₹100, ₹200 and ₹500 are easily accessible, lower denominations have become nearly absent in circulation in many regions. This imbalance, the union notes, has led to a mismatch between what people withdraw from banks and ATMs and what they actually need for small, frequent purchases.

ATMs and Banks Offer Limited Relief

One of the core issues identified by AIRBEA is the pattern of cash distribution. Most ATMs predominantly dispense high-value notes, leaving customers without the change required for smaller payments. Bank branches, too, are reportedly struggling to meet public demand for lower denominations.

As a result, simple cash-based activities—such as paying for bus or auto-rickshaw fares, buying vegetables, or making purchases at local grocery shops—have become cumbersome. The impact is especially severe for elderly citizens, daily wage workers and rural residents, many of whom rely almost entirely on cash for their livelihoods.

Small Traders Feel the Pinch

The shortage has also placed small businesses under strain. Street vendors, petty shop owners and local traders are finding it difficult to complete transactions when customers cannot provide exact change. In some cases, sales are delayed or abandoned altogether, affecting already thin profit margins.

AIRBEA has underlined that despite the rapid growth of digital payments, cash continues to play a vital role in the economy. Limited internet connectivity, lack of digital literacy and the nature of small-value transactions mean that a large section of the population still prefers physical currency.

Calls for Immediate Corrective Steps

To address the crisis, the association has urged the RBI to take swift action to improve the circulation of small-denomination notes through banks and RBI issue offices. It has also proposed reviving initiatives to encourage the use of coins, including the organisation of coin distribution fairs.

Such fairs, AIRBEA suggests, could be held in partnership with panchayats, cooperative societies, regional rural banks and self-help groups. The union believes that coordinated efforts of this kind could help restore balance in currency circulation and ease the burden on the public.