FM Arun Jaitley: No cash crunch in India, temporary shortage being tackled


"The temporary shortage caused by "sudden and unusual increase" in some areas is being tackled quickly", the finance minister tweeted on Tuesday. "In two-three days, this problem will be resolved", Minister of State in Finance Shiv Pratap Shukla told TV channels. The NSUI workers showed protest against Acche Din claims of Bhartiya Janata Party led Union Government.

According to RBI data, currency in circulation as on April 6 was Rs 18.17 lakh crore, which is close to the number at the time of demonetisation. There is one problem that some states have less currency & others have more.

"The government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other".

Severe cash crisis has thrown life out of gear as ATMs have run dry in several states and cities including Telangana, Hyderabad, Varanasi, Vadodara, Bhopal, Patna and a few areas in Delhi. Despite currency flow in the economy being higher than the pre-demonetisation level many states have reported shortage of cash over the past few days. They don't want to get money deposited in their accounts, as there are no ATMs for about 25 km. "Cash is not coming back into the banking system", State Bank of India (SBI) regional manager, Visakhapatnam, H Purnima, said. "We have visited several ATMs since yesterday but this is the situation everywhere", a person said in Hyderabad.

Some bank officials also believe the RBI has deliberately reduced cash supply to banks to force people to make digital payments and increase cashless transactions.

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As reports of the cash crunch emerged in Madhya Pradesh, the Chief Minister Shivraj Singh Chouhan alleged a "conspiracy" to create problems. "News reports say that ATMs around the country are running of out cash". Big notes missing. Reminder of #DeMonetisation days.

"16.5 lakh crore notes were printed & circulated in markets, but where are Rs.2000 notes going?"

'We are facing a cash crunch. ANI on Tuesday quoted people as saying in Bhopal that they have been facing cash crunch for the last 15 days as the ATMs are not dispensing currency notes.

The reason for the cash crunch this time could be the lack of higher denomination currency notes needed to pay harvest season wages.

"We held a meeting with the RBI officials, banks, and states today (Thursday)".