SBI Says There Is A Need For Rs 500 Notes To End Bank Queues

At least Rs 10 lakh crore must be in circulation for the long queues at banks to end, but the pressing need is the missing Rs 500 currency, a top State Bank of India (SBI) official said on Monday (5 December).

"According to our study, two months of consumption amount, Rs 10 lakh crore, is required in circulation in the markets. The queues will then disappear," SBI Managing Director Rajnish Kumar said.

The official pointed out that lack of enough Rs 500 notes was hindering the faster circulation of currency. "Right now there is nothing between Rs 100 and Rs 2,000 notes, which is causing problems. Once Rs 500 is in circulation, it will ease the situation," he said.

With inputs from IANS