Severe cash crunch in ATMs in several states

Marco Green
April 17, 2018

"Have reviewed the currency situation in the country. The temporary shortage caused by "sudden and unusual increase" in some areas is being tackled quickly", he tweeted. "We are facing difficulty, don't know what to do". "It will be done in 3 days". "In Gujarat, the currency chests were not getting adequate supply of cash from the RBI", said an executive director of a public sector bank. Some states have less currency and the others have more. There is one problem that some states have less currency&others have more.Govt has formed state-wise committee & RBI also formed committee to transfer currency from one state to other.

The government, meanwhile, has been trying to encourage people to adopt cashless payment methods like debit cards, UPI and Aadhaar-Enabled Payments, but has had limited success so far.

Among the worst affected cities are Hyderabad, Bhopal, Surat, Varanasi and Delhi.

People in Bhopal told ANI, "We are facing a cash crunch. Banks have been advised to optimize cash flow at ATMs well". "We moved through six ATMs fetching for cash in different banks on Anandnagar Road and Bodakdev, however, all of them had run out of cash", said Shamik Das, a resident of Satellite.

The Manipur government also wrote a letter to the finance ministry apprising them of acute shortage of cash in the state.

On the other hand, Madhya Pradesh chief minister Shivraj Singh Chouhan claimed that Rs 2,000 notes were vanishing from the market, and alleged that there was a "conspiracy" behind it. After this exercise (demonetisation), the currency in circulation increased to Rs 16,50,000 crore. "But notes of Rs 2,000 are missing from the market".

A senior RBI official said, "Prior to note ban on November 8, 2016, the total value of Rs 500 and Rs 1000 denomination notes in circulation was Rs 17.74 lakh". When the cash shortfall was reported from Andhra Pradesh and Telangana in March, it was attributed by some to a misunderstanding of the Financial Resolution and Deposit Insurance Bill, which had a "bail in" clause where depositors would bear a portion of any losses.

People across the country are facing problems to take out cash from the ATMs. "The government will act tough on this". "We are facing difficulty, don't know what to do".

Other reports by Click Lancashire

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