Police detain Congress activists during a protest against the note ban outside RBI in Ahmedabad. Pic/PTI
Police detain Congress activists during a protest against the note ban outside RBI in Ahmedabad. Pic/PTI

New Delhi: Battling an unprecedented cash crunch after the government spiked high-value currency notes, banks at various places have been receiving soiled Rs 100 notes for disbursal that were otherwise supposed to be dumped after being taken out of circulation years ago.

Many customers in Delhi complained to IANS they received some of these soiled and almost mouldy notes that in the odd case even smelt bad. A bank manager, who wished not to be named, said, "The RBI is sending old R100 notes which were not destroyed, These notes smell. We are spraying them with perfumes and insecticides before disbursing them."

The manager said R100 notes worth millions of rupees have been returned for circulation to narrow down the huge cash demand-supply. Usually, soiled and damaged notes are returned to banks and sent to RBI where they are put into shredder machines and ferried to dumping sites.