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

People stand outside a non-functioning ATM in Delhi. Several people complained ATMs were not working and some that were only dispensed Rs 500 notes

People stand outside a non-functioning ATM in Delhi. Several people complained ATMs were not working and some that were only dispensed Rs 500 notes

"Over all, there is more than adequate currency in circulation and also available with the banks", Mr. Jaitely said in a tweet.

RBI report show that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore.

With public anger rising across the country over cash availability, some media reports quoting bank officials said that the sudden spike in number of people willing to withdraw huge amount of cash stems from the fear of "bail-in clause" in the Financial Resolution and Deposit Insurance (FRDI) Bill. Government has formed state-wise committee and RBI has also formed a committee to transfer currency from one state to the other. Taking cognizance to the matter, Mos Finance SP Shukla said that government is aware of the issue and steady steps are taken by the Government.

In a situation eerily similar to the ATM conditions soon after demonetisation in November 2016, ATMs have been reported as "out of cash" or "not working" in several states, including Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Bihar, Uttar Pradesh, Madhya Pradesh, Gujarat, Chhattisgarh and Telangana as well as in the national capital Delhi. Chhattisgarh chief minister Raman Singh said his state "like many other states, has been affected by a cash crunch".

Automated Teller Machines (ATMs) across various states are running dry with the present situation reminiscent of demonetisation of high-value currency notes one-and-a-half years back.

People in Bhopal say, "We are facing a cash crunch". The situation has been the same for last 15 days.

People complain of inconvenience due to lack of currency in ATMs in several states. After the demonitisation exercise, the currency in circulation increased to Rs. 16,50,000 crore. "We have visited several ATMs since yesterday but it is the situation everywhere".

People across the country are facing problems to take out cash from the ATMs. "But notes of Rs 2,000 are missing from the market". Meanwhile, the opposition Congress has asked if the cash crunch has taken place because of "deliberate move" of the government.

During Akshaya Tritiya, it is customary for Indians to buy gold as a good omen, and most of the gold purchases in India are done via cash. "Compared to that over Rs 18 lakh crore worth of high denomination notes are in circulation today". This is a conspiracy to create problems. "The government will act tough on this", he added.

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