PHAGWARA: A severe scarcity of newly printed ₹10 and ₹20 notes has triggered widespread overpricing and illegal trade across the region, prompting public outrage during the peak wedding season. While banks continue to report limited availability of small-denomination notes, residents allege that the same currency is abundantly circulating through private channels at inflated rates, raising serious concerns about internal collusion.
Residents from several villages and towns said that despite repeated visits, bank counters have been unable to provide small notes for routine transactions. However, bundles of fresh currency are reportedly being sold freely in local markets by traders and brokers who, according to locals, are operating with the tacit support of certain bank officials.
Customers claim that some bank employees either demanded unofficial payments or redirected them to outside agents. In multiple instances, shopkeepers were found selling ₹1, 000 worth of ₹10 notes only after adding an extra ₹300 to ₹400, while sealed bundles of ₹20 notes were allegedly being offered for ₹2, 400 to ₹2, 500 against their actual value of ₹2, 000.
Public resentment is growing amid fears that the circulation of small currency is slipping into the hands of black-marketers. Social workers and community leaders said the illegal diversion of new notes is causing severe inconvenience, particularly to families preparing for weddings and social functions where small denominations are traditionally required for customary rituals and gifting.