Published: Tue, April 17, 2018
Economy | By

No cash crisis, 'adequate currency' available : Arun Jaitley

No cash crisis, 'adequate currency' available : Arun Jaitley

Shortage of currency is being reported in many parts of Andhra Pradesh, Telangana, Maharashtra and Madhya Pradesh. Citing RBI data, SBI chairman said that currency in circulation as on April 6 was Rs 18.17 lakh crore, which is more than the currency at the time of demonetisation.

"The Government is taking all steps to ensure that ATMs are supplied with cash and to get non-functional ATMs normalised at the earliest", the statement added.

However, people in Madhya Pradesh claimed that they have been facing a cash crunch for the last two weeks. "RBI officials are saying cash going out of banks is not coming back in Telangana and Andhra", he said. A certain provision in the proposed Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 sparked a rumour that the money would not be safe in banks if the Bill became a law.

There have been several reports that people are finding it hard to withdraw cash from ATMs, which either don't have the desired amount of cash, are empty, or only have 500 rs notes. The RBI may either be holding back Rs 2000 notes or could have stopped printing high denomination currency, said a SBI Research report in December past year. Also, in some states, the recalibration of ATM machines to dispense 200 rupee currency notes is yet to be completed.

New Delhi:Amid news reports of a cash crunch from some parts of the country, the government on Tuesday said there is adequate currency in circulation and it is addressing a "temporary shortage" in some areas.

According to reports, the ATMs also lacked enough denomination notes. The government estimates the situation will normalize in the next one week. "We were forced to stand in queues as he snatched Rs 500-1,000 notes from our pockets and put it in Nirav Modi's pocket", Gandhi told ANI.

Almost one and a half years after the cash crisis that gripped the nation in the wake of Prime Minister Narendra Modi's sudden demonetisation announcement, parts of the country have again been haunted by shortage of currency. The demand for currency is also reflected in the slowdown in deposit growth. During the same period, bank credit grew 10.3% compared to 8.2% in the comparable period in the previous year. This may have led to a cash crunch. ATMs are going dry and banks are also not giving cash.

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