ATMs go dry in some states of India

ATMs go dry in some states of India

Former RBI deputy governor R. Gandhi has noted that based on pre-demonetisation trends - that is, if demonetisation had not taken place - India's currency in circulation should be close to Rs 23 lakh crore. India's finance ministry said that it had "adequate reserves" to meet the "extraordinary demand" of currency notes.

The Reserve Bank also said there is no shortage of currency in the system even though it has ramped up printing of notes at its four presses. The goverment also followed up his words by announcing that they have made a decision to increase printing of Rs 500 notes by five times With the rise in printing of the new currency notes, the government hopes to supply about 70,000-75,000 crore notes in a month's time.

Residents in Madhya Pradesh capital Bhopal said many ATMs have had no cash for 15 days.

In a situation that serves as a reminder of the days following demonetisation, ATMs across various locations in India have run dry. "Nirav Modi fled with Rs 30,000 crore and the prime minister did not utter a word".

"This is the marriage season, and also the harvest season, so many people need cash".

According to him, "Currency printing will increase from Rs 500 crore to Rs 2,500 crore per day of Rs 500 note".

Japan's Abe to meet with Trump as scandals swirl at home
Pyongyang has acknowledging abducting 13 Japanese in the late 1970s and early '80s, while Tokyo maintains North Korea abducted 17. Kono said Japan would be willing to pursue projects within the network that "meet the standards of the global community".

People from several states, including Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, Bihar and Telangana have said that ATMs in their areas either do not have cash or are not functioning. Karnataka facing elections next month has been partly spared from the cash crunch. "Is there a Financial Emergency going on in the country?" she asked in a tweet. Jaitley has also hinted at an "unusual spurt in demand" for cash as a reason for the problem. While the reports indicate that Rs 2,000 notes are disappearing, the Centre admitted that there is an acute shortage of Rs 500 notes, adding that it would take a week to up the supply.

That is a source of worry for India's policymakers as a sustained heavy currency withdrawal suggests a return of cash hoarding by individuals, diluting the goal of a massive note ban exercise by Prime Minister Narendra Modi in late 2016. There is one problem that some states have less currency & others have more. Demand for cash shot up by 450 billion rupees ($6.9 billion) in the first two weeks of April alone, it said.

The Narendra Modi government on Tuesday morning went into firefighting mode over reports of cash crunches in various parts of the country, with multiple high-level government officials seeking to assure the Indian public that any shortage of liquidity was a logistics problem and nothing more.

Finance minister Arun Jaitley has attributed the situation to a "sudden and unusual increase" of cash in "some areas".

SBI chairman Rajnish Kumar said it would not be correct to state that there is currency shortage in the country.

The Department also said the government is taking all steps to ensure that ATMs are supplied with cash and to get non-functional ATMs normalised at the earliest.

Related Articles