Jaitley blames 'sudden and unusual' demand for cash crunch


Finance Minister Arun Jaitley took note of the crisis and said on Twitter, "overall there is more than adequate currency in circulation.the temporary shortage is caused by sudden and unusual increase in some areas".

Below we have listed 10 developments reviewing the cash situation in India. "In Gujarat, the currency chests were not getting adequate supply of cash from the RBI", said an executive director of a public sector bank. Government has formed state-wise committee and RBI has also formed a committee to transfer currency from one state to the other. "It'll be done in 3 days", SP Shukla, Mos Finance, informed.

Shortage of currency is being reported in many parts of Andhra Pradesh, Telangana, Maharashtra and Madhya Pradesh.

People in Delhi say "We are facing the cash crunch. We need to pay for the admission of children and purchase groceries and vegetables".

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The cash crunch has given the opposition fresh ammo to hit out at the ruling BJP at the Center.

An alarmed chief minister of Madhya Pradesh, Shivraj Singh Chouhan, was quoted by ANI, "16.5 lakh crore notes were printed & circulated in markets, but where are Rs.2000 notes going?"

Situation is worst in Madhya Pradesh where people are complaining that ATMs are non dispensing cash from the past 15 days.

He further said that the Centre has only Rs. 1,25,000 crores of cash currency as of now. "We have visited several ATMs today as well, to no avail".

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"In Bihar, people told ANI, "(We) have been taking rounds of ATMs since last three days but cash is still not available.

Chouhan added that he has taken up the issue with the Union Government. In some of the states, recalibration of ATM machines for Rs 200 notes have not been completed leading to shortage of cash.

Puneet Sharma, a trader at Lucknow's Aminabad market compared the situation to that after the government scrapped high-value notes in November 2016.

People in Delhi have also been talking about the non-availability of cast at ATMs.

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Citing RBI data, the Times of India reported that currency in circulation as on April 6 was Rs 18.17 lakh crore, which is close to the number at the time of demonetisation. "We are facing a situation similar to the government had scrapped 500- and 1000 rupee notes that triggered a cash shortage", he said. This is a conspiracy to create problems.