There was no cash shortage, there is no cash shortage, and there will be no cash shortage, contended the Narendra Modi government after reports that ATMs are going dry and people are not being to withdraw cash in some states. DEA secretary Subhash Chandra Garg said that the reason behind cash crunch in some parts of the country was “unusually” high demand witnesses in past two-three months, which the government is all prepared to address.
He said that there is no cash-shortage as, currently, India has 1.75 crore worth of notes to meet the rising demands. He also said that ATMs running dry in some parts of the country could also be attributed to the failure of machines and local management even as he noted that the government is trying to understand the reasons behind this situation.
There is 18 lakh crore currency in circulation, Subhash Chandra Garg told reporters. Earlier, in the day the news of cash crunch in states such as Telangana and Andhra Pradesh gripped the nation after which the government rushed to allay fears while the opposition termed it as ‘financial emergency.’
Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and poll-bound Karnataka have reported a shortage of currency and ATMs running dry. Finance Minister Arun Jaitley earlier in the day said that the “temporary shortage” in certain states is being “tackled quickly” and that there is more than adequate currency in circulation.
SBI Chairman Rajnish Kumar too said that it would not be correct to state that there is a currency shortage in the country. There has been an imbalance due to the crop procurement season when demand for currency goes up, he said.