Night markets are experiencing a shortage of small denomination currency notes, creating significant difficulties for both urban and rural communities. Manickam Tagore, Congress Vice President in the Lok Sabha, highlighted this issue in a letter to Union Finance Minister Nirmala Sitharaman, stressing the negative impact on the poor.
Tagore pointed to reports indicating that the Reserve Bank of India (RBI) has stopped printing small notes, citing the promotion of UPI and cashless transactions as the reason. While he recognizes the government’s push for digital payments, he argues that eliminating small notes harms those who depend on them for everyday transactions.
He emphasized that rural residents and individuals who avoid digital transactions face substantial challenges in making small payments. Tagore urged the Finance Minister to direct the RBI to resume printing small notes and ensure a sufficient supply to meet public demand.
Furthermore, he called for improvements to digital payment infrastructure in rural areas, noting that daily wage laborers and railway workers rely heavily on cash for their livelihoods. Tagore advocated for a balanced approach that supports both cash and digital payment systems.