New Delhi, April 17: The Reserve Bank of India (RBI) on Tuesday denied reports of cash shortage and said that there is sufficient cash in the RBI vaults and currency chests. A statement released by RBI said, “There is no currency shortage. It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests. Printing of the notes has been ramped up in all the 4 note presses.”
The statement further said, “The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently, and the re-calibration of ATMs still underway. RBI is closely monitoring both these aspects.”
Earlier in the day, there were reports of cash crunch and ATMs running dry in different parts of the country. People faced a lot of problems as they were unable to buy their daily needs, which includes buying groceries and vegetables.
Taking stock of the situation, Union Finance Minister Arun Jaitley called this crunch ‘temporary shortage’ and said that the situation is being tackled quickly. “Have reviewed the currency situation in the country. Overall there is more than the 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,” Jaitley tweeted.
Residents from Telangana, Hyderabad, Delhi, Uttar Pradesh, Madhya Pradesh, Bihar, Andhra Pradesh, Manipur said they were not able to withdraw cash from ATMs as kiosks in several parts of the city had run out of cash.
The Department of Economic Affairs, meanwhile, said that they have increased the printing of Rs 500 notes. “We print about 500 crores of Rs 500 notes per day. We have taken steps to raise this production 5 times. In next couple of days, we’ll have a supply of about 2500 crore of Rs 500 notes per day. In a month, supply would be about Rs 70,000-Rs 75,000 crore,” said SC Garg, Secretary, Department of Economic Affairs. “Government is taking all steps to ensure that ATMs are supplied with cash and to get non-functional ATMs normalised at the earliest,” the Department added.
State Bank of India Chairman Rajnish Kumar attributed the cash crunch to “geographical issues”. One reason is that procurement season has come and the payment to farmers has gone up. In Maharashtra and Mumbai there is no cash crunch as far as State Bank of India is concerned. In the next week, things will start coming back to normalcy. There is a department which monitors situations like this. This is not new. RBI has been given an intent to increase the flow of Rs 500 notes in the system,” he said.