Hyderabad RTI activist alleges thriving currency black market near RBI office

Hyderabad: Just a stone's throw away from the Reserve Bank of India's Hyderabad office in Saifabad, a bustling black market for currency appears to thrive in plain sight, alleges Hyderabad-based RTI activist Annamala Paramesh, who filed a series of RTI applications to expose the activity.

The central bank told Right to Information (RTI) applicants it has not received or investigated complaints about this unauthorized trade. This directly questions how authorities monitor India's currency distribution system.

Going further into the details, RTI activist A. Paramesh filed the applications after observing that bank branches, including those of SBI, Union Bank, HDFC, and Bank of Baroda, were not providing fresh section, that is, 100 currency notes of any denomination of Rs 10 and Rs 20 notes to the public.

System under question

In his applications, Paramesh asked about the RBI's official distribution procedure and monitoring systems. He also inquired about records of complaints and whether any entities are authorized to sell notes directly to the public.

The RBI initially rejected one application on procedural grounds, stating the Rs 10 fee paid via a court fee stamp was invalid. After Paramesh resubmitted it, the bank provided partial information.

The RBI confirmed it supplies banknotes to currency chests, which then distribute them to bank branches for public distribution. The bank also referenced its Master Direction, which requires branches to prevent private money changers or dealers from dominating exchange facilities.

Denial of knowledge and action

When Paramesh asked for specifics about complaints or investigations into illegal sales, the RBI issued a blanket denial. For queries from January 2020 to June 2025, the RBI's Public Information Officer repeatedly stated, “Information sought in this regard is not available with us.”

“For over five years, the central bank claims there are no records of formal complaints, internal audit findings, or probes into new currency note leakage, despite the practice being visibly rampant in Hyderabad,” added Paramesh.

On a few occasions, the RBI also refused to provide details of past investigations, citing sections of the RTI Act that protect fiduciary relationships and personal information.

Glaring disconnect

The situation leaves a critical question unanswered. The lack of any official record of the issue, despite its visible presence, points to a monitoring gap. “If RBI itself says it has no information, then who is actually responsible for monitoring and stopping this illegal activity?” he questioned.

Paramesh noted, “The answers were very general and did not address the root problem. Private sellers trade currency openly in public, yet the RBI reports no records or investigations. This raises doubts about proper system monitoring.”