Cash crunch: Finance Minister Arun Jaitley says shortage is 'temporary'

Cash crunch: Finance Minister Arun Jaitley says shortage is 'temporary'

Cash machines in many Indian cities ran out of notes on Tuesday, but authorities allayed fears of a currency shortage saying there was more than adequate cash in circulation in the country. In a tweet on Tuesday, the FM said that the currency situation in the country has been "reviewed" and assured the availability of "adequate currency in circulation". Chouhan said, "The currency worth Rs 15,00,000 crore was in circulation before demonetisation".

There were, however, reports of shortages in Maharashtra, Gujarat and Punjab as well.

The Reserve Bank of India's report shows that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore. A bank official said, "For the past few days, many bank branches in Bhopal don't receive enough cash, not enough to fill up the ATMs. SBI is facing a major problem because payment under many government schemes is made through the bank". In a month, supply would be about Rs 70,000-75,000 crore. "The government will act tough on this", he added. Congress president also hits out at the Prime Minister for his silence over the recent scams.

"We do not know what or where the problem is but the common man is facing difficulty as the ATM Kiosks are not dispensing cash".

Chouhan added that he has taken up the issue with the Union Government.

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However, cash was being disbursed at bank branches as usual. "We print about 500 crores of Rs 500 notes per day".

Already huge bank defaults in Punjab National Bank, ICICI bank scam, and evasion of thousands of crores by big business magnates are making round every day in the country, leading to loss of people's faith in the banking system. "We were forced to stand in queues as he snatched Rs 500-1,000 notes from our pockets and put them in Nirav Modi's pocket", he said.

Last weekend, media reports spoke of ATMS especially in smaller towns and villages not delivering cash over the previous week. "We have visited several ATMs today as well, to no avail".

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

"The situation will stabilise once demand normalises. supply of currency will also reduce. Is there a Financial Emergency going on in the country?" she tweeted. "RBI has been given an intent to increase the flow of Rs 500 notes in the system", he said.

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