Cash crunch: More than adequate currency in circulation, says FM Arun Jaitley

SBI chief says ATM woes to be resolved by tomorrow; bank allows cash withdrawal through PoS machines

SBI Providing Cash Withdrawal Facility through PoS Without Any Charges to Deal With Cash Crunch Situation

Finance Minister Arun Jaitley said that there was more than adequate currency in circulation and also available with the banks.

Cash-starved customers in large numbers started queuing up outside ATMs and banks since early Tuesday morning to withdraw currency notes from vending machines, but majority were either out of service or had a board notifying "no cash".

Earlier on Tuesday, Minister of State (MoS) Finance SP Shukla said, "We've cash currency of Rs 1,25,000 crore right now". The ministry officials also held consultations with state officials and bank heads in the wake of shortage of cash.

The government and Reserve Bank of India (RBI) officials had met and attributed the shortfall to unusual local demand in a few states and instructed banks to improve their cash management. "It'll be done in 3 days", Shukla said. People have complained about a cash crunch in Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana.

Major cities across India hit by cash-crunch on Tuesday. As per reports, most of the ATMs are running out of cash that has created big problems for the people. "We need to pay for the admission of children and purchase groceries and vegetables". And the only party flush with cash is the BJP: "the people suffer", he tweeted. The situation has been the same for last 15 days. The situation is so tense in the state that even Chief Minister Shivraj Singh Chouhan had to make a public comment on the issue. After this exercise (demonetisation), the currency in circulation increased to Rs 16,50,000 crore. "We have visited several ATMs since yesterday but it is the situation everywhere", said a customer in Hyderabad. "The government will act tough on this", he said. "Banks have been told to address the issue immediately", a finance ministry official added. In some of the states, recalibration of ATM machines for Rs 200 notes have not been completed leading to shortage of cash.

"When demonetisation took place, markets were flooded with currency notes worth Rs 15 lakh crore". This is a conspiracy to create problems.

People across the country are facing problems to take out cash from the ATMs. "Where these notes of Rs 2,000 denomination are going, who are keeping them out of circulation? Facing a lot of inconvenience in this heat", said a Patna resident.

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