Note Update: Shortage of ₹10, ₹20, and ₹50 Notes Worsens — Government Issues Important Update

Cash Crunch Hits Markets as Small Denomination Notes Disappear; Retailers Struggle with Change

A significant cash crunch has hit markets across several Indian cities, with shortage of ₹10, ₹20, and ₹50 notes becoming a major challenge for shopkeepers and small business owners. The situation has become so critical that retailers are now paying commission to acquire small notes and coins just to keep their daily business running.

Widespread Shortage of Small Notes

Reports of this crisis are surfacing not only from Indore, but also from smaller towns and cities across the country. Local traders have raised concerns that banks are not supplying enough small denomination currency. Even after repeated requests, traders claim that only old or torn notes are being given, and that too in limited quantity.

A grocery store owner from Shajapur, Jayprakash Bhawsar, stated that over the past two months, the situation has worsened significantly. “More than half of our customers now pay digitally, but we still need small notes for daily cash transactions. We are forced to buy change with commission to keep things running,” he said.

Traders Forced to Pay Commission for Change

In Indore, grocery trader Chetan Ahuja shared that to avoid losing customers due to the lack of change, many shopkeepers are buying small notes at a premium. The move, though costly, is considered necessary to prevent disruption in business operations.

This is affecting daily cash flow and impacting both small vendors and consumers, especially in areas with limited access to digital payments.

Banks Also Facing Shortage

It’s not just the market experiencing this issue — banks themselves are running low on ₹10, ₹20, and ₹50 notes. Neha Verma, Branch Manager at Bank of Baroda in Indore, confirmed that banks typically keep a limited stock of small notes, and recently, currency chests have been supplying fewer small denominations.

“Many customers demand new and crisp notes, but the supply isn’t meeting demand. This is putting additional pressure on our operations,” she explained.

Government’s Response

In response to growing complaints, sources in the Finance Ministry have acknowledged the issue and assured that the Reserve Bank of India (RBI) is working on boosting the supply of small denomination notes. An official communication on the matter is expected soon. Authorities are also urging businesses to encourage digital payments wherever possible while the supply chain for cash is being stabilized.