Cash crunch problem being tackled quickly, says Arun Jaitley
The Union Finance Ministry has reviewed the ongoing cash crunch situation in the country, said Finance Minister Arun Jaitley on Tuesday.
Jaitley, in a statement, said that there has been an unusual spurt in currency demand in the country in last three months. “Currency supply increased by Rs 45,000 crore in the first 13 days of this month,” said Jaitley assuring that the government with Reserve Bank of India (RBI) has taken all steps to meet this unusual demand.
"We continue to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand," he added.
Earlier he tweeted, "Overall, there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly."
Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.
— Arun Jaitley (@arunjaitley) April 17, 2018
.@SecretaryDEA Subhash Chandra Garg is addressing the media on the #CashCrunch situation @FinMinIndia https://t.co/esZGvfBvj2
— CNBC-TV18 (@CNBCTV18Live) April 17, 2018
Shiv Pratap Shukla, Minister of State for Finance, admitted that there was a "small problem" with automated teller machines (ATMs) in a few states. He assured that the issue will be solved in the next couple of days.
"We have cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. Government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other," he added.
Rajnish Kumar, SBI chairman, told CNBC-TV18 that there was sufficient cash in the system, however, he said the situation was a little imbalanced in certain areas.
"ATMs are running between 84%-88% capacity for SBI," he said.
#CashCrunch| Cash dispensed right now around Rs 5.5-6 lk per ATM/day; Inter-state movement of cash has stopped in the last 2-3 days, learns @_ritusingh pic.twitter.com/Y80PhyWe9P
— CNBC-TV18 News (@CNBCTV18News) April 17, 2018
After receiving a number of complaints regarding cash crunch in ATMs in several states, the Union Finance Ministry called a meeting of the RBI, banks and state government officials to discuss the issue, reported Business Standard.
According to Business Standard that reviewed an analysis by the RBI, the rate of cash withdrawal was far more than the cash deposits in banks in Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana.
Telangana: People in Hyderabad say, 'We have been unable to withdraw cash from ATMs as the kiosks (ATM Kiosk), in several parts of the city, have run out of cash. We have visited several ATMs since yesterday but it is the situation everywhere'. pic.twitter.com/wRMS3jgjyP
— ANI (@ANI) April 17, 2018
“We held a meeting with the RBI officials, banks, and states today (Thursday). There is no apparent cash crunch across states. Bihar and Manipur are facing some issues. Banks have been advised to optimise cash flow at ATMs well,” a senior finance ministry official was quoted by the paper.
The officials also told the paper that the cash crunch was limited to a few states because of mismanagement of cash flow by banks, recalibration of ATMs and logistical issues.
“During the harvest season (rabi), transactions go up. There are always some temporary mismatches. Whenever we get intimation from our currency chests that there is a shortage, we immediately replenish. The notes in circulation are now more than what they were before demonetisation. This currency shortage theory is incorrect,” an RBI official told the paper.
First Published: Apr 17, 2018 10:53 AM IST
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