Cash shortage: Govt might take 3 days to restore cash

Reports of cash crunch pouring in from different states as ATMs go dry

Nobody is answering that as of now.

"We continue to have in stock adequate currency notes of all denominations, including of Rs500, Rs200 and Rs100 to meet any demand", the statement said adding that the higher demand will be met. But nobody is clearing the air on what could have caused the "unusual spurt". The government has blamed the "unusual spurt in currency demand" in the country in last three months for the cash shortage.

In the meanwhile, the scuffle is also being fought on social media with many taking to Twitter to express the problems that they are facing due to shortage of currency notes. "It will be done in three days", Shukla told ANI.

Finance Minister Arun Jaitley said the "temporary shortage" in certain states is being "tackled quickly" and that there is "more than adequate" currency in circulation.

Now the currency in stock is about Rs 2 lakh crore and the reserves are adequate to meet any unusual spurt in demand, he said.

It has also made a decision to ramp up the supply of new Rs 500 notes, even as reports suggested that Rs 2,000 notes, which was easier to hoard, were particularly impacted by the shortage. "Who is creating currency crunch?" This is a conspiracy to create problems. Andhra Pradesh Chief Minister N Chandrababu Naidu requested the RBI to send Rs 5,000 crore cash but there was no response. So in a month, we will be printing about Rs 70,000-Rs 75,000 crore. "So people have started withdrawing and it has contributed to the crisis", he said.

India's banking system has been fraught with challenges including a surge in bad loans and a recent revelation of a $2-billion fraud at the country's second-largest state lender Punjab National Bank.

The Congress party also slammed the government for the cash crunch, questioning if the cash shortage was deliberate.

There have been rumours that the passage of Financial Resolution and Deposit Insurance (FRDI) Bill will lead to heavy monetary losses for savers if a bank goes bankrupt.

CPM leader Sitaram Yechury tweeted, "Demonetisation did not kill terrorism".

He had taken up the issue with the Union Government, Mr Chouhan added.

Opposition has described it as a "deliberate move" of the government. "The people of the country forced to suffer even after 1.5 years of demonetisation show the acute failure of BJP government", tweeted Congress. After the demonetisation exercise, the currency in circulation increased to Rs. 16,50,000 crore.

The Reserve Bank of India (RBI), on its part, has increased the supply to cash to the affected states.

People in Delhi have also been talking about the non-availability of cast at ATMs. Currency in circulation now is about Rs 18 lakh crore.

There are also speculations around stressed banks trying to cut on cost by cutting down on cash vans, which is in turn aggravating the problem. Complaints of cash crunch have been reported from semi-urban and rural regions of the states.

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