Union Finance Minister Arun Jaitley, on Tuesday, said that there was more than adequate currency in circulation in the country.
Below we have listed 10 developments reviewing the cash situation in India.
"Over all, there is more than adequate currency in circulation and also available with the banks", Mr. Jaitely said in a tweet. "It'll be done in 3 days", said Mos Finance Shiv Pratap Shukla.More news: Perkasie Police investigate armed robbery at McDonald's
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. 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.
Meanwhile, the RBI on Tuesday formed a committee to tide over the cash crunch crisis that has hit several states in the country. And the only party flush with cash is the BJP: "the people suffer". The situation has been the same for last 15 days.
An alarmed chief minister of Madhya Pradesh, Shivraj Singh Chouhan, was quoted by ANI, "16.5 lakh crore notes were printed & circulated in markets, but where are Rs.2000 notes going?"More news: Domino's Will Now Deliver Your Pizza To The Beach
He further said that the Centre has only Rs. 1,25,000 crores of cash currency as of now. "Banks have been told to address the issue immediately", a finance ministry official added.
Public sector bank executives also said there is a spurt in demand for cash to make payments for agricultural activities as well. ATMs in other areas like the posh Hazratganj, Indira Nagar and Shahnajaf Road have been run dry for the last two days. "We have visited several ATMs today as well, to no avail", a local said. In some states, the recalibration of ATM machines to dispense 200 rupee currency notes is yet to be finished.
A senior officer of the State Bank of India in Bhopal, who asked not to be named, told Hindustan Times, "Hoarding of notes is taking place in a large number especially of Rs 2,000 denomination notes. The government will act tough on this". Currency notes in circulation are now at Rs 18.04 trillion.More news: Philly DA wants Meek Mill's 2007 conviction thrown out