Rushing in to assuage fears after reports of cash crunch in various states including poll-bound Karnataka and Maharashtra, finance minister Arun Jaitley as well as SBI Chairman Rajnish Kumar said that there is more than adequate currency in circulation and also within the banks.
Rushing in to assuage fears relating to reports of cash crunch in various states including poll-bound Karnataka and Maharashtra, finance minister Arun Jaitley said that there is more than adequate currency in circulation and also within the banks. In a tweet Arun Jaitley said, “ 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 ‘sudden and unusual increase’ in some areas is being tackled quickly.” Apart from the FM, Rajnish Kumar, Chairman of India’s largest bank SBI told ET Now that there is no shortage of currency, and in fact the overall notes under circulation have gone up in the latest financial year.
SBI Chairman Rajnish Kumar said, “To say that there is shortage of currency is not a right statement to make. The currency has in fact increased in the last one year, the statistics is before you.” However, Rajnish Kumar pointed out that due to the procurement season, there has been an imbalance, and the bank is taking all steps to divert cash from surplus areas. “Because this is the procurement season, the demand for currency goes up. Then there are also salary payments,” he noted.
Sharing specific areas in which SBI has anticipated increased demand for cash, Kumar said, “Punjab, Madhya Pradesh, Uttar Pradesh are seeing heightened demand due to procurement season, we have anticipated that the requirement for currency will go up. Andhra and Telangana are states that need more supplies,” he said adding that the notes will be supplied to these regions from surplus areas, which cannot be disclosed for security reasons. “We are in regular touch with RBI regarding the deployment of specific denomination,” he added.
Reiterating that the public need not fear or panic, Rajnish Kumar said, “We have certain states which have surplus cash. We will be sending cash to other areas of shortage. There are imbalances between geography. There is enough currency in the overall system. I request the people to not fear. Bank in regular touch with RBI to address any imbalance.
SP Shukla, Union Minister of State for Finance, told ANI, “We have cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. The government has formed a state-wise committee and RBI also formed a committee to transfer currency from one state to other. It will be done in three days.”