Jaitley reviews cash-crunch situation, calls it 'temporary shortage'

Cash crunch

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The cash crunch has been reported in several states Andhra Pradesh, Gujarat, Rajasthan, Uttar Pradesh, Madhya Pradesh and Maharashtra including poll-bound Karnataka.

Mr. Jaitley said that he reviewed the currency situation in the country and indicated that the temporary shortage in currency was mainly due to sudden and unusual increase in some areas.

Meanwhile, Finance Minister Arun Jaitley tweeted that the issue is being looked into.

Have reviewed the currency situation in the country. Since the amount of currency put out by the Reserve Bank of India (RBI) and government printing presses is adequate for normal transactions, bankers believe there is hoarding of the Rs 2,000 notes. The government added that it continues to have in stock "adequate currency notes of all denominations, including of Rs 500, Rs 200 and Rs 100 to meet any demand". "RBI officials are saying cash going out of banks is not coming back in Telangana and Andhra", he said.

SBI Chairman Rajnish Kumar said, "To say that there is shortage of currency is not a right statement to make". "I would urge public to return the excess Rs 2000 notes to banks as we have to keep the system running".




Opposition parties were quick to point out the mismanagement by the government and remind the public of a similar shortage faced in the aftermath of demonetisation.

Minister of State for Finance, S P Shukla told ANI that the cash crunch was due to some states having low currency reserves in comparison to others. "It will be done in three days". "The government will act tough on this", the Madhya Pradesh Chief Minister said. She also asked if there was a financial emergency in the country. "Seeing reports of ATMs running out of cash in several states". Big notes missing. Reminder of #DeMonetisation days. "#CashCrunch #CashlessATMs", Banerjee tweeted.

Citing RBI data, the Times of India reported that currency in circulation as on April 6 was Rs 18.17 lakh crore, which is close to the number at the time of demonetisation.

The Centre on Tuesday admitted to the cash crunch and blamed it on uneven distribution of currency by the RBI across states. "But notes of Rs 2,000 are missing from the market".

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