UP,TN top cash shredders courtesy students,tourists

RBI pumps less number of currency notes into the public sphere than the ones it shreds in UP and TN.

Written by Agencies | Published: January 23, 2012 5:39:41 pm

The Reserve Bank of India (RBI) branches in Chennai and Kanpur were shredding more number of soiled and torn currency notes than the new ones they pump into Tamil Nadu and Uttar Pradesh respectively.

“The RBI office in Chennai and Kanpur are shredding more soiled and torn currency notes than anywhere else in the country. The amount of soiled notes shredded in these two places were more than the number of new currency notes issued every year (for the two states),” RBI sources here said today.

The trend in Chennai was due to the increasing number of students,industrialists and medical tourists visiting Tamil Nadu.

“If you observe,there are over 400 plus engineering colleges in the state and most of them do not accept money through bank channels for admission fee and tuition fees.

Especially,colleges which accept donation,decline to accept money through any bank channel,since the details of such transactions would be on record,” the sources said.

The hosiery hub of Tirupur too witnessed heavy cash transactions among the traders visiting the town for their business. “Many businessmen from Tirupur,Coimbatore come here and exchange soiled currency notes which they get from across the country,” they said.

Chennai emerging as a much sought-after health care destination too is cited as another reason for the heavy inflow of currency notes. “You can see many people from Assam,West Bengal and other eastern states coming here for medical treatment and use currency and not cards,” they said.

Similar was the case with Kanpur as the city and surrounding areas housed hundreds of industries,the sources said.

RBI was in the process of conducting awareness campaigns about fake currency in areas around the IT Corridor on the city outskirts where migrants labourers were concentrated in view of the recent busting of counterfeit currency racket in the city and union territory of Puducherry.

The National Investigation Agency along with the CBCID of Tamil Nadu and Puducherry nabbed three persons in Chennai and Puducherry last week for circulating fake currencies into the market.

Technical experts from RBI Chennai will be conducting a similar campaign and awareness meet in Puducherry tomorrow.

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