Cash crunch is back as ATMs across India go dry: 10 points

Adequate currency in circulation, shortage temporary: FM Arun Jaitley

In a bid to allay the fears of cash shortage in the country, Finance Minister Arun Jaitley on Tuesday said there was more there adequate currency in circulation.

The Congress has slammed Modi government, and even accused it of deliberately creating a situation of cash crunch in the country. Overall there is more than the adequate currency in circulation and also available with the Banks.

SP Shukla, Finance Ministry official, said that RBI has formed a committee to transfer currency from one state to cash-crunch hit states. Govt has formed state-wise committee & RBI also formed committee to transfer currency from one state to other.

Several areas in Assam, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh and Madhya Pradesh have reported shortage of currency in the past few days. While the growth in currency has been nearly flat (compared to the day before demonetisation), the need for currency has shrunk considerably because of the high level of digitisation.Cash crunch in ATMs may also be the result of a slowdown in deposit growth. They said they are not being able to withdraw cash from ATMs as kiosks in several parts of the city have run out of cash. "We need to pay for the admission of children and purchase groceries and vegetables", said a person in Varanasi.

However, according to news reports, several parts of India are facing a cash shortfall this week prompting the government to step in with corrective measures like better routing of cash from currency chests.

People from Bhopal in Madhya Pradesh claimed that the situation had been prevailing for the past 15 days. After the demonitisation exercise, the currency in circulation increased to Rs. 16,50,000 crore. The issue will be resolved in three days, he added.

People across the country are facing problems to take out cash from the ATMs.

Public sector bank executives also said there is a spurt in demand for cash to make payments for agricultural activities as well. Big notes missing. Reminder of #DeMonetisation days.

"Prior to note ban on November 8, 2016, the total value of Rs 500 and Rs 1000 denomination notes in circulation was Rs 17.74 lakh". This is a conspiracy to create problems. Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. "The government will act tough on this", the Madhya Pradesh Chief Minister said. "We have visited several ATMs today as well, to no avail".

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