Unusual demand reason for cash crunch says govt
The problem of empty ATMs + seems to have returned to haunt citizens in several parts of the country, such as Andhra Pradesh, Telangana, Karnataka, Bihar and Madhya Pradesh, prompting the government and Reserve Bank of India to swing into damage control mode to calm jittery depositors.
ATMs in some parts of the country continued to remain out of cash on Wednesday as the government scrambled to rush currency to meet an "unusual spurt in demand" ahead of looming polls.
When confronted with examples of how most people are facing a severe shortage of cash, the bankers - who only speak under cover of anonymity - admit that the supply of currency is dwindling and withdrawals skyrocketing. "The temporary shortage caused by "sudden and unusual increase" in some areas is being tackled quickly", Jaitley wrote on Twitter.
Demanding an immediate statement from the government on "the truth behind the cash crunch", he told PTI that "the people have a right to know and you can not hoodwink them in a democracy".
But the bigger question is that what has led to cash crunch in several states more than a year after the demonetisation. While the growth in currency has been nearly flat (compared to the day before demonetisation), the need for currency has shrunk considerably because of the high level of digitisation. She also wondered whether there was a "financial emergency" in the country. GST has forced large swathes of the economy to become formal and dispense with the need to use cash exclusively.
There is around Rs 7 lakh crore worth of Rs 2,000 notes in circulation.
According to the government and the RBI, the currency in circulation has normalised, after demonetisation knocked off the bulk of it.
Читайте также: Ford Mustang Cobra Jet will be the most powerful version yetGarg said there was no cash crunch in the country, pointing out that now around Rs 18 lakh crore worth of currency was in circulation. RBI, however, maintained there was no shortage of cash.
Sources also indicated that hoarding of notes of 2000 and 500 denominations is adding to the problem. One should note that digital transactions have significantly increased in the country post demonetisation. Nirav Modi fled with Rs 30,000 crore and the Prime Minister didn't utter a word. This is why any attempt to hoard cash by any institution may come a cropper today. We have taken steps to raise this production five times.
Reacting to reports of the currency shortage, it said the currency in circulation has breached the pre-note ban levels of Rs 17.84 trillion and added that such reports are "intriguing and defy logic".
Amid cash shortage in rural areas of Gujarat, Bank employees' forum has asked the Reserve Bank of India (RBI)'s Gujarat region office to make currency supply transparent by issuing daily statement on currency supply to Branch chests. The short fall in the supply was reflected at ATMs of SBI on Tuesday.
"We had to tell our suppliers to wait for a few days for payments. On Monday, we needed cash for some routine diagnostics and spent two hours for it as the lab insisted on cash", she said. "Also this cash that they take is not deposited in their accounts".
A second official said that the Centre had a meeting with officials of state-run banks over video conference to discuss the situation.
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