Amid cash crunch, RBI says 'No shortage of currency'

ATM cash crunch

ATM cash crunch Among the worst affected cities are Hyderabad Bhopal Surat Varanasi and Delhi

This may have led to a cash crunch. According to RBI data, currency in circulation as on April 6 was Rs 18.17 lakh crore, which is close to the number at the time of demonetisation.

Modi's opponents have latched on to the latest reports of cash shortages, questioning his government's handling of the economy.

"Have reviewed the currency situation in the country. We keep Rs 2.5-3 lakh crore more currency in stock for excess demand". Besides, the RBI has also formed a committee to transfer currency from cash-surplus states to the others, he said. "It will be done in three days", Shukla told ANI.

The government has attributed the cash crunch to an "unusual spurt in currency demand", but it has not explained why there is such an unusual spurt now.

Cash crunch has been reported from the southern states of Karnataka, Andhra Pradesh and Telangana, northern states of Rajasthan and Uttar Pradesh, central state of Madhya Pradesh and even the Indian capital. "But this does not affect the overall supply of Rs 2,000 notes", Garg had said. "This is a conspiracy to create problems & state govt will take strict action on it, we are in touch with centre also". "Between January to March, demand for cash rose up to Rs 45,000 crore in the country, and that was supplied", Garg added.

During an address at a farmers' convention, Mr Chouhan said on Monday, "The currency worth Rs. 15,00,000 crore was in circulation before demonetisation".

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.

"Nirav Modi fled with Rs 30,000 crore and the prime minister did not utter a word".

As per the reports from several states, ATMs are running out of cash.

The RBI is urging more frequent cash deliveries to replenish machines in the affected areas, the spokesman said. "ATMs are running out of cash". The incremental supply of currency, going ahead, is also likely to be in the denomination of Rs 500, whose printing will begin soon.

Only 8% of the ATMs in the country have been having enough cash.

Shortage of currency and a spurt in withdrawals is causing a cash crunchPeople in the city were reminded of post-demonetisation days on Tuesday too as most ATMs ran dry and many were forced to visit more than one ATM to get cash.

The finance ministry held meetings with the brass of all banks through video conferencing on Tuesday and Wednesday and directed them to fill up ATMs expeditiously.

Trust us, if anything goes wrong in the country, which unfortunately is happening on a daily basis, don't seek answers from the government and it is also futile to pray to god.

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