New Delhi, Apr 19: Even as complaints of cash crunch continued to come in from different parts of the country including New Delhi, Uttar Pradesh, Madhya Pradesh and Chhattisgarh, the government said that there was cash in 80 per cent ATMs across India and that some people were misleading the country. Reacting to reports of cash crunch in the country, Minister of State, Finance, Shiv Pratap Shukla said, “I believe there is cash in more than 80 per cent of the ATMs in the country, some people are in the habit of misleading the country just to build their own image, I request them to not do so.”
However, on Wednesday, Principal Economic Advisor Sanjeev Sanyal said that the cash crunch in the ATMs was due to the sudden demand in states such as Karnataka and Telangana, but added that the issue was temporary. He said that there was plenty of cash available with the Reserve Bank of India (RBI) and the solution to the cash crunch will be found in a few days.
“Its natural, the demand for cash keeps on changing with time. But has seen a sudden rise in past 2-3 weeks and was triggered in some areas like Karnataka and Telangana,’ he said.
On the other hand, State Bank of India (SBI) Research pegged the cash shortfall in the system at a whopping Rs 70,000 crore, which is a third of the monthly withdrawals at ATMs. In a note that came after reports of currency shortages, it depended on nominal economic growth, currency with the public and the rise in digital transactions to arrive at the shortfall estimate.
People in various cities including Delhi, Varanasi, Bhopal and Hyderabad said on Tuesday that they were struggling as ATMs were running dry, creating a situation of a severe cash crunch. There were complaints that either the ATMs didn’t have cash or they were not working. Commoners said that they were finding it difficult to meet their daily needs, which include buying groceries and vegetables.