‘4 hrs and 7 km to withdraw Rs 2,000’: Cash crunch hits multiple cities and towns

Finance Minister Arun Jaitley said that the issue will be resolved soon.
‘4 hrs and 7 km to withdraw Rs 2,000’: Cash crunch hits multiple cities and towns
‘4 hrs and 7 km to withdraw Rs 2,000’: Cash crunch hits multiple cities and towns
Written by :

In a situation that serves as a reminder of the days following demonetisation, ATMs across various locations in India have run dry. Reports of ATMs running out of cash have been pouring in from cities and towns across Karnataka, Andhra Pradesh and Telangana.

Meanwhile, Finance Minister Arun Jaitley tweeted that the issue is being looked into.

“Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” he said.

In response to the Finance Minister, KT Rama Rao, a minister in the Telangana cabinet, said that this was an issue being faced by customers for the last three months.

“Sir, with due respect the cash shortage in Banks & ATMs is neither sudden nor temporary. I’ve been hearing complaints for over 3 months repeatedly in Hyderabad.

Pls have RBI & Fin Min team dig deeper & not brush away an issue that is eroding people’s confidence in banking system,” he tweeted.

Many Twitter users complained about the lack of cash in ATMs.

According to Business Standard, an analysis conducted by the Reserve Bank of India showed that more cash was being withdrawn than deposited in states such as Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana.

“We have cash currency of Rs 1,25,000 cr right now. There is one problem that some states have less currency and others have more. The government has formed state-wise committee & RBI also formed a committee to transfer currency from one state to other. It'll be done in 3 days,” Minister of State for Finance, SP Shukla, told ANI.

SBI Chairman Rajnish Kumar Sinha told ANI that this was a “temporary situation which is mainly due to geographical factors.”

According to Reserve Bank of India data, currency in circulation as on April 6 was Rs 18.17 lakh crore. Industry experts feel the shortage has been caused because of hoarding of the Rs 2,000 currency notes.

Earlier, speaking about the cash crunch in Telangana, the state’s Finance Minister Etala Rajender reportedly told the Telangana Legislative Council that the reason for the same is due to reduced cash inflows.

“The crunch is due to inadequate supply of currency by RBI, reduction in cash inflow from the public, high demand for higher denomination notes. ATMs are going dry and banks are also not giving cash. RBI officials are saying cash going out of banks is not coming back in Telangana and Andhra,” he said.

Related Stories

No stories found.
The News Minute