The Andhra Pradesh government termed Jaitley's statement as "irresponsible" and said people were facing hardships due to cash crunch.

Cash crunch neither sudden nor temporary Andhra Telangana govts tell JaitleyFile photo: Facebook/Nara Lokesh
news Controversy Wednesday, April 18, 2018 - 08:02

Both the Telugu states on Tuesday disputed Union Finance Minister Arun Jaitley's claim that cash crunch in banks and ATMs is sudden.

While Telangana said that the cash shortage is neither sudden nor temporary and urged the Union Minister not to brush away an issue that is eroding people's confidence in banking system, the Andhra Pradesh government termed Jaitley's statement as "irresponsible" and said people were facing hardships due to cash crunch.

"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 a sudden and unusual increase' in some areas is being tackled quickly," tweeted Jaitley on Tuesday.

Hours later, Telangana's Minister KT Rama Rao tweeted that the problem is neither sudden nor temporary.

"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,"(sic) tweeted Rama Rao, who is son of Chief Minister K. Chandrasekhar Rao.

Andhra Pradesh Chief Minister N. Chandrababu Naidu's son and Cabinet Minister N. Lokesh also reacted to Jaitley's statement.

"It's very sad that, Hon'ble Finance Minister Arun Jaitley is not understanding the reality, and saying every thing is good. AP is facing severe cash crunch. AP Govt is not able to even give the pensions and pay to MGNREGS workers," he tweeted.

Lokesh said Chandrababu Naidu had written several times about this issue to the central government but the situation had not improved. "Atleast now, Central Govt. has to react on this, and resolve the issue at the earliest," Lokesh added.

The Finance Ministry said that unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar.

The daily cash flows into banks' ATMs has fallen drastically since the first week of April and now is as low as 30% for public sector banks, the Confederation of ATM Industry said on Tuesday.

CATMi spokesperson V. Balasubramanian said that the ATM service providers do a daily calculation of the cash required which is sent to banks at night for the next day.

Till March end, the daily demand was being met by 90%, irrespective of public sector or private banks, but this fell drastically since the first week of April, with the figure now at 30%.

With ATMs suddenly running dry in several states, Congress President Rahul Gandhi on Tuesday said the "terror" of demonetisation has returned to haunt the country, slamming Prime Minister Narendra Modi for what he described as destroying India's banking system.

 

IANS inputs

 

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