For one or other reason, and for one or other cause, there has always been a problem in India regarding the currency notes. At one time, a currency note with no Gandhi picture comes out, at the other time, the not will have no number printed on it, such problems are nowadays seen more often.

Despite all these issues, Indian banks are now struggling with another issue. As per the issues, they are unable to exchange Rs 200 and Rs 2000 notes as guidelines governing the two denomination notes have not been a part of Section 28 of the Reserve Bank of India (RBI) Act. The problem has arisen because the size of Mahatma Gandhi has been changed in new series thus requiring the amendment to the Act.

Coming to the law, the prominent section 28 of the act does not include details about Rs 200 and Rs 2000, as they have been introduced post the demonetization period. The Act, currently, specifies notes of the denomination of Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000. The banking regulator needs to soon amend the law, as it could turn out into a bigger problem.

To sort out this issue, RBI reached out to the finance minister in 2017 but so far no action has been taken up by the government. We all know that Rs 2000 note got launched on November 8, 2016, after high-value notes of Rs 500 and Rs, 1,000 were withdrawn by the government. The RBI subsequently launched the Rs 200 note on August 25, 2017, to deal with the liquidity issue.

It is noticed that there was an acute shortage of cash in ATMs till sometime back. Madhya Pradesh Finance Minister Jayant Kumar Malaiya said that the cash crunch has happened due to shortage Rs 2000 in circulation. He told ANI.

“This situation (cash crunch) is not restricted to the state, it is there in the entire country. It is true that the notes of Rs.2000, which amounts to a currency of Rs. 7 lakh crore has gone out of supply, thus leading to such a situation”.