That's a wrap! Thanks for tuning in. Your response encourages us.
Apr 19, 07:54 PM (IST)
RBI and Govt mismanaged currency distribution, says Yashwant Sinha
Commenting on the recent unavailability of cash across India, Yashwant Sinha, senior BJP leader, said the main reason for the crunch was poor distribution and poor currency management.
In an interview with CNBC-TV18, Sinha said there was no back-up plan for this emergency and the information tumbling out everyday indicates that the crisis is widespread and the magnitude is huge. "Taking into account the total currency in circulation, this is complete mismanagement on part of the Reserve Bank of India (RBI)."
Apr 19, 07:45 PM (IST)
Yashwat Sinha questions Govt over cash crunch.
Apr 19, 06:35 PM (IST)
Cash crunch a political conspiracy to mislead nation: Manoj Sinha
Telecom Minister Manoj Sinha today said that there is enough cash available in the country and the hype around currency shortage has been created to mislead the nation.
"I feel that it is unnecessary hype which has been created. Finance Secretary and RBI have said that there is no cash crunch in 80 percent of the ATMs and there is enough cash available in RBI chest also. It is a political conspiracy to mislead nation. People should remain cautious from such conspiracies," Sinha said in response to query on cash crunch in the country.
He alleged that an artificial demand was created to create the hype around cash crunch. (PTI)
Apr 19, 04:55 PM (IST)
SBI customers can withdraw cash at 4.78 lakh PoS machines
In the wake of cash shortage faced by customers at ATMs, State Bank of India (SBI) has urged debit card holders to use any of the 4.78 lakh Point of Sale (PoS) terminals of the bank to withdraw cash.
Currently, SBI is providing cash withdrawal through PoS without any fees or charges to all bank customers.
Apr 19, 04:30 PM (IST)
Cash crunch a temporary issue, says Jayant Sinha
Cash Crunch is a temporary isolated issue which will soon get resolved, minister of state for Civil Aviation Jayant Sinha told ET NOW in an interview.
"Increasing the printing of notes will soon normalize the situation," Sinha said.
The finance ministry is closely looking at the issue of cash crunch, Sinha said, adding that the country is moving towards a less-cash society and not a cashless society.
Apr 19, 04:25 PM (IST)
For withdrawals upto Rs2000, @TheOfficialSBI has cash@POS facility @ 4.78 lac POS machines. Customer can use SBI & any other bank debit card to withdraw cash upto Rs2000 in Tier 3 to 6 & upto Rs1000 in Tier 1 & 2 cities per card per day presently without any charges. #CashCrunch
Sleuths of the Special Vigilance Unit (SVU) today unearthed Rs 25 lakh cash from a bank locker held by the in-laws of suspended senior superintendent of police, Vivek Kumar, from Muzzafarnagar in Uttar Pradesh.
The locker was located in Vijaya Bank and the vigilance sleuths had found its keys during a raid on Kumar's in-laws' residence in Muzaffarnagar. The vigilance team, which froze six lockers held by Kumar and his family members, had earlier recovered huge cash, jewellery and property documents worth Rs 2.15 crore from two lockers.
"The team (vigilance) has found Rs 25 lakh cash from the third locker of Vijaya Bank branch in Muzaffarnagar. The locker is jointly held by Vivek Kumar's father-in-law Ved Prakash Karnwal and mother-in-law Uma Rani," Inspector General (IG), SVU, Ratan Sanjay told PTI. The team is still investigating the other three lockers, he added.
The government has ramped up printing of currency notes and is operating all the four presses 24x7, an official said today amid ATMs running dry in many parts of the country.
Since this week, the presses are minting out Rs 500 and Rs 200 notes without a break to meet an estimated Rs 70,000 crore of currency shortfall in the country, he said.
On an average, the four presses of Security Printing and Minting Corporation of India Limited (SPMCIL) operate for 18-19 hours daily with a 3-4 hour break. But since the time ATMs ran dry due to "unusual spurt in demand" for cash, the presses are operating 24X7, an official told PTI.
Normally a currency printing cycle is of 15 days, meaning thereby the increased number of currencies which are being printed beginning this week would be available only towards the end of this month.
Apr 19, 04:05 PM (IST)
ATMs yet to be recalibrated to disburse new notes: C H Venkatachalam
All India Bank Employees Association (AIBEA) General Secretary C H Venkatachalam claimed that even after the completion of 16 months following the announcement of denomination by Prime Minister Narendra Modi in November 2016, ATMs were yet to be "recalibrated" to disburse newly designed currency notes.
"This is adding to the problem of shortage", he said.
The government's decision to allow Financial Resolution and Deposit Insurance Bill 2017 has added fear among the public as the Bill contains a clause by which Government can utilise the public deposits of customers in banks to offset losses of banks, he said.
With increasing bad loans and frequent frauds in banks, customers get a fear whether their bank deposits will be safe, he said. "The RBI Governor has made a statement that there is adequate printing of currency notes. Then where have the currency notes gone?," Venkatachalam wanted to know.
"It is high time that the present RBI Governor owns up and resigns or should be removed. RBI is grossly negligent. It is the duty of RBI and government to dispel these fears among the public," he said.
Apr 19, 04:02 PM (IST)
Concrete action required to address currency shortage: AIBEA
All India Bank Employees Association (AIBEA), representing the banking industry, today said concrete action is required by the Reserve Bank to address the cash crunch and warned of a protest on the issue.
"If timely and immediate action is not taken to improve supply of currency notes, AIBEA would be compelled to ventilate the anger and agony of the public through agitations," the association General Secretary, C H Venkatachalam said.
AIBEA is part of the United Forum of Bank Unions, which is an umbrella body of nine unions, including All India Bank Officers' Association and National Organisation of Bank Workers across the country.
Venkatachalam said bank employees were facing the wrath and anger of customers due to the cash crunch. Noting that the currency note shortage has become very acute in several states, he said, "many bank branches do not have sufficient cash to cater to withdrawals by customers".
Reserve Bank of India controls the supply of money in the economy, and when more number of Rs 2,000 denomination notes were printed, it is natural that there will be shortage of small denomination notes, he said. "Rs 2,000 notes constitute the bulk of currency supply and hence there is a shortage of notes of small denominations... viz Rs 50, Rs 100," he said.
Apr 19, 03:58 PM (IST)
Bank unions threaten agitation on cash crunch issue
The All-India Banks Employees Association (AIBEA) has threatened to launch an agitation on the cash crunch issue, its general secretary CH Venkatachalam said today.
"Mere statements will not help. Concrete, immediate action is needed to improve the supply of currency notes," Venkatachalam told PTI.
For the past few weeks, banks in many states, especially those in Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Telangana, Andhra and the poll-bound Karnataka have been facing severe cash shortages, with many ATMs showing 'no cash' signboards. Because of this, bank employees are facing the wrath and anger of the public, said Venkatachalam.
"Customers are shouting at and abusing bank staff for no fault of theirs," he added. While the RBI has claimed that there is enough printing and supply of cash in the system, government tried to blame it on the unusual spike in cash demand due to the ongoing farm procurement.
Blaming the government and the Reserve Bank for inadequate supply of currency notes, he said in fact the problem started with the decision to print Rs 2,000 notes after the note-ban announcement in November 2016.
Apr 19, 03:56 PM (IST)
Cash shortage problem to be resolved by tomorrow: SBI Chief
The problem of cash crunch being faced by some states will be resolved by tomorrow as currency is being transported to areas which are facing the shortage, SBI Chairman Rajnish Kumar said today.
Kumar said there are certain areas where there is a problem with running of ATMs and availability of cash of particular denomination.
"It is not a uniform cash crunch problem. It is there in geographies like Telangana and Bihar. We are hoping that the problem will be resolved by tomorrow because cash is in transition and it is reaching these states by today evening," Kumar told reporters here.
Apr 19, 03:10 PM (IST)
Bank did not face cash shortage, says Sumant Kathpalia
The bank said it has not faced any shortage at any ATM, Sumant Kathpalia, country head, consumer banking at IndusInd Bank said today. Kathpadia added that only Karnataka saw some demand rise and they are meeting it.
Apr 19, 03:01 PM (IST)
Warned the Centre, RBI well in advance, say Andhra Padesh, Telangana
The state governments of Andhra Pradesh and Telangana say they had flagged their concerns to the union government and the Reserve Bank of India (RBI) well in advance, reported NDTV.
On February 14, Andhra Pradesh Chief Minister N Chandrababu Naidu wrote to Finance Minister Arun Jaitley, seeking that the RBI provide Rs 5,000 crore to the state that "is facing a serious shortage of higher and lower denomination currency notes".
"Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on March 1, 2018," Naidu wrote.
Apr 19, 01:54 PM (IST)
Govt is planning to supply additional Rs 1,000 cr to Bihar: Report
The government is planning to supply additional Rs 1,000 crore to Bihar to ease the ongoing cash crunch situation, reports ET NOW.
"About 86 percent ATMs across the country are functioning so far with nearly 90 percent ATMs functioning in Punjab, Haryana, Jammu and Kashmir, Maharashtra, Odisha and Tamil Nadu," sources told the channel.
Sources added that 70 percent ATMs are functional in Andhra Pradesh and Telangana and 66 percent are up and running in Bihar.
Apr 19, 12:39 PM (IST)
Now, the big question that arises is that despite the cash in circulation being higher than the pre-demonetisation figures, why this crunch? #CashCrunchhttps://t.co/VGRtGnBIbL
Only Bihar, Telangana with lower cash right now, says SBI Chairman
Only Bihar and Telangana are the two states with lower cash right now, SBI Chairman Rajnish Kumar told CNBC TV18 in an interview.
"We will try to normalise situation at SBI ATMs in Bihar and Telangana by tomorrow," Kumar said.
Kumar added that there has to be a sense of urgency in dealing with stressed assests, which is getting taking time due to delayed judgements in many NCLT cases.
Apr 19, 12:09 PM (IST)
"Part of cash crunch is real and other part is a result of hoarding", Patanjali's Acharya Balakrishna tells ET Now.
Apr 19, 12:07 PM (IST)
Average availability of cash in ATMs up to 82%, says SBI Chairman
Average availability of cash in ATMs has gone up to 82 percent from 74 percent, SBI Chairman Rajnish Kumar told CNBC TV18 in an interview.
The recaliberation of ATMs with Rs 200 notes will be completed by the month-end, Kumar added.
"We have seen lesser deposits in Telangana showing cash is not returning to system," Kumar explained, adding that the overall currency at macro level is higher than pre-demonetisation level.
Apr 19, 11:37 AM (IST)
I believe there is cash in more than 80% of the ATMs in the country, some people are in the habit of misleading the country just to build their own image, I request them to not do so: Shiv Pratap Shukla, MoS Finance #CashCrunchpic.twitter.com/U0jLbKjp1D
Tax authorities have conducted 30-35 raids in Karnataka and parts of Andhra Pradesh to drive out cash hoarders amid the RBI's increased infusion of cash following currency shortage in several states, reported Economic Times.
RBI has pumped over Rs 800-900 crore in Bihar through the ATM network with initial assessments suggesting that the shortage may be tackled soon.
The problem seems to be more deep-rooted in Andhra and Telangana, where the department in viewing the role of large contractors.
Apr 19, 11:17 AM (IST)
Cash crunch may pace down India's fast-moving sectors
India’s fast-moving sector including consumer-facing companies may slow down as four states heading for assembly elections, and several surrounding ones, are facing a cash crunch, reported Economic Times.
It may also derail the just recovering buoyancy after the twin blows of demonetisation and GST implementation.
Elections are underway in Karnataka, and scheduled later in the year in Madhya Pradesh, Chhattisgarh, Rajasthan and Mizoram by January 2019. The general elections will be held by the summer of 2019.
Apr 19, 11:08 AM (IST)
Unusual spurt in demand for currency had led to many ATMs and banks running out of cash in Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telengana and poll-bound Karnataka and some other states in the past few days even as the government and the RBI assured the public that there was no currency shortage.
Bihar: Locals in Patna say, 'not able to meet our daily needs as their is no cash. We are troubled. Have to visit multiple ATMs before we can get cash.' #CashCrunchpic.twitter.com/6dJVfQiw2g
RBI should first acknowledge there's a cash shortage, says Praveen Chakravarty
RBI should first acknowledge that there's a cash shortage, Praveen Chakravarty, Chairman, Data Analytics, Congress told CNBC TV18 in an interview.
The RBI and the government must clarify if there's a demand related problem or a supply related one and explain where the problem is, Chakravarty added.
Apr 19, 09:48 AM (IST)
* 161 days since demonetisation and here we today, as a nation dealing with the Cash crunch crisis. Very close to the ideals of the existing government’s “cashless economy”#CashlessATM#CashCrunch
Demand-supply mismatch not the first time, says Rituraj Kishore Sinha
The mismatch between demand and supply of specific currency denominations is not the first time, Rituraj Kishore Sinha, Group Managing Director, SIS told CNBC TV18 in an interview.
A Rs 2,000 note is not conducive for high velocity and changes hands much less than a smaller denomination note Sinha added.
highlights
That's a wrap! Thanks for tuning in. Your response encourages us.
RBI and Govt mismanaged currency distribution, says Yashwant Sinha.
Cash crunch a political conspiracy to mislead nation: Manoj Sinha
Printing presses operating 24x7, generating Rs 500, 200 notes
Concrete action required to address currency shortage: AIBEA
Bank unions threaten agitation on cash crunch issue
Bank did not face cash shortage, says Sumant Kathpalia
Only Bihar, Telangana with lower cash right now, says SBI Chairman
Average availability of cash in ATMs up to 82%, says SBI Chairman
I-T sleuths conduct raids on cash hoarders, amid RBI's supply push
PM Modi 'solely responsible' for cash crunch: Congress
Mobile wallet companies see spike in digital transactions
India may need additional Rs 1 lakh crore to meet cash demand
ATMs in some states still out of cash; 80% working now
'Ghost' of demonetisation has returned to haunt government: P Chidambaram
Cash crunch: SBI Research pegs shortfall at Rs 70,000 crore
Cash crunch: SBI Research pegs shortfall at Rs 70,000 crore
ATMs go dry in Bihar, Deputy CM says situation will normalise soon
RBI worried over rise in one-day default norms breach
Corruption has only multiplied since demonetisation, says Priyanka Chaturvedi
Cash situation at ATMs improving, says SBI
Amid cash crunch, Ahmedabad police tweets to pay challan online
Cash Crunch likely due to higher food grain procurement under MSP
Cash shortage neither sudden nor temporary, says Telangana minister KT Rama Rao
Nearly 80% ATMs will function within 24 hours
Sufficient cash in the system, says SBI Chairman
No cash crunch in country right now: Subhash Chandra Garg
ATMs across the country go dry, govt steps in to allay fears
P Chidambaram slams govt for cash crunch; says supply 'arbitrarily reduced'
Cash crunch issue will be sorted in 2-3 days: Dinabandhu Mohapatra
ATM cash crunch to be resolved in 5-7 days: Rajiv Kumar
Cash crisis tells how PM Modi's demonetisation disaster is still wreaking havoc: Sitaram Yechury
Cash shortage due to logistical issues, says RBI
More than adequate currency in circulation, says FM Arun Jaitley
RBI says no shortage of currency, but steps up printing of notes at 4 presses
Removal of AAP advisers a tactic to divert attention from cash crunch, rapes: Raghav Chadha
That's a wrap! Thanks for tuning in. Your response encourages us.
RBI and Govt mismanaged currency distribution, says Yashwant Sinha
Commenting on the recent unavailability of cash across India, Yashwant Sinha, senior BJP leader, said the main reason for the crunch was poor distribution and poor currency management.
In an interview with CNBC-TV18, Sinha said there was no back-up plan for this emergency and the information tumbling out everyday indicates that the crisis is widespread and the magnitude is huge. "Taking into account the total currency in circulation, this is complete mismanagement on part of the Reserve Bank of India (RBI)."
Yashwat Sinha questions Govt over cash crunch.
Cash crunch a political conspiracy to mislead nation: Manoj Sinha
Telecom Minister Manoj Sinha today said that there is enough cash available in the country and the hype around currency shortage has been created to mislead the nation.
"I feel that it is unnecessary hype which has been created. Finance Secretary and RBI have said that there is no cash crunch in 80 percent of the ATMs and there is enough cash available in RBI chest also. It is a political conspiracy to mislead nation. People should remain cautious from such conspiracies," Sinha said in response to query on cash crunch in the country.
He alleged that an artificial demand was created to create the hype around cash crunch. (PTI)
SBI customers can withdraw cash at 4.78 lakh PoS machines
In the wake of cash shortage faced by customers at ATMs, State Bank of India (SBI) has urged debit card holders to use any of the 4.78 lakh Point of Sale (PoS) terminals of the bank to withdraw cash.
Currently, SBI is providing cash withdrawal through PoS without any fees or charges to all bank customers.
Cash crunch a temporary issue, says Jayant Sinha
Cash Crunch is a temporary isolated issue which will soon get resolved, minister of state for Civil Aviation Jayant Sinha told ET NOW in an interview.
"Increasing the printing of notes will soon normalize the situation," Sinha said.
The finance ministry is closely looking at the issue of cash crunch, Sinha said, adding that the country is moving towards a less-cash society and not a cashless society.
Amid cash crunch, Rs 25 lakh unearthed from suspended SSP's in-laws' locker
Sleuths of the Special Vigilance Unit (SVU) today unearthed Rs 25 lakh cash from a bank locker held by the in-laws of suspended senior superintendent of police, Vivek Kumar, from Muzzafarnagar in Uttar Pradesh.
The locker was located in Vijaya Bank and the vigilance sleuths had found its keys during a raid on Kumar's in-laws' residence in Muzaffarnagar. The vigilance team, which froze six lockers held by Kumar and his family members, had earlier recovered huge cash, jewellery and property documents worth Rs 2.15 crore from two lockers.
"The team (vigilance) has found Rs 25 lakh cash from the third locker of Vijaya Bank branch in Muzaffarnagar. The locker is jointly held by Vivek Kumar's father-in-law Ved Prakash Karnwal and mother-in-law Uma Rani," Inspector General (IG), SVU, Ratan Sanjay told PTI. The team is still investigating the other three lockers, he added.
Printing presses operating 24x7, generating Rs 500, 200 notes
The government has ramped up printing of currency notes and is operating all the four presses 24x7, an official said today amid ATMs running dry in many parts of the country.
Since this week, the presses are minting out Rs 500 and Rs 200 notes without a break to meet an estimated Rs 70,000 crore of currency shortfall in the country, he said.
On an average, the four presses of Security Printing and Minting Corporation of India Limited (SPMCIL) operate for 18-19 hours daily with a 3-4 hour break. But since the time ATMs ran dry due to "unusual spurt in demand" for cash, the presses are operating 24X7, an official told PTI.
Normally a currency printing cycle is of 15 days, meaning thereby the increased number of currencies which are being printed beginning this week would be available only towards the end of this month.
ATMs yet to be recalibrated to disburse new notes: C H Venkatachalam
All India Bank Employees Association (AIBEA) General Secretary C H Venkatachalam claimed that even after the completion of 16 months following the announcement of denomination by Prime Minister Narendra Modi in November 2016, ATMs were yet to be "recalibrated" to disburse newly designed currency notes.
"This is adding to the problem of shortage", he said.
The government's decision to allow Financial Resolution and Deposit Insurance Bill 2017 has added fear among the public as the Bill contains a clause by which Government can utilise the public deposits of customers in banks to offset losses of banks, he said.
With increasing bad loans and frequent frauds in banks, customers get a fear whether their bank deposits will be safe, he said. "The RBI Governor has made a statement that there is adequate printing of currency notes. Then where have the currency notes gone?," Venkatachalam wanted to know.
"It is high time that the present RBI Governor owns up and resigns or should be removed. RBI is grossly negligent. It is the duty of RBI and government to dispel these fears among the public," he said.
Concrete action required to address currency shortage: AIBEA
All India Bank Employees Association (AIBEA), representing the banking industry, today said concrete action is required by the Reserve Bank to address the cash crunch and warned of a protest on the issue.
"If timely and immediate action is not taken to improve supply of currency notes, AIBEA would be compelled to ventilate the anger and agony of the public through agitations," the association General Secretary, C H Venkatachalam said.
AIBEA is part of the United Forum of Bank Unions, which is an umbrella body of nine unions, including All India Bank Officers' Association and National Organisation of Bank Workers across the country.
Venkatachalam said bank employees were facing the wrath and anger of customers due to the cash crunch. Noting that the currency note shortage has become very acute in several states, he said, "many bank branches do not have sufficient cash to cater to withdrawals by customers".
Reserve Bank of India controls the supply of money in the economy, and when more number of Rs 2,000 denomination notes were printed, it is natural that there will be shortage of small denomination notes, he said. "Rs 2,000 notes constitute the bulk of currency supply and hence there is a shortage of notes of small denominations... viz Rs 50, Rs 100," he said.
Bank unions threaten agitation on cash crunch issue
The All-India Banks Employees Association (AIBEA) has threatened to launch an agitation on the cash crunch issue, its general secretary CH Venkatachalam said today.
"Mere statements will not help. Concrete, immediate action is needed to improve the supply of currency notes," Venkatachalam told PTI.
For the past few weeks, banks in many states, especially those in Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Telangana, Andhra and the poll-bound Karnataka have been facing severe cash shortages, with many ATMs showing 'no cash' signboards. Because of this, bank employees are facing the wrath and anger of the public, said Venkatachalam.
"Customers are shouting at and abusing bank staff for no fault of theirs," he added. While the RBI has claimed that there is enough printing and supply of cash in the system, government tried to blame it on the unusual spike in cash demand due to the ongoing farm procurement.
Blaming the government and the Reserve Bank for inadequate supply of currency notes, he said in fact the problem started with the decision to print Rs 2,000 notes after the note-ban announcement in November 2016.
Cash shortage problem to be resolved by tomorrow: SBI Chief
The problem of cash crunch being faced by some states will be resolved by tomorrow as currency is being transported to areas which are facing the shortage, SBI Chairman Rajnish Kumar said today.
Kumar said there are certain areas where there is a problem with running of ATMs and availability of cash of particular denomination.
"It is not a uniform cash crunch problem. It is there in geographies like Telangana and Bihar. We are hoping that the problem will be resolved by tomorrow because cash is in transition and it is reaching these states by today evening," Kumar told reporters here.
Bank did not face cash shortage, says Sumant Kathpalia
The bank said it has not faced any shortage at any ATM, Sumant Kathpalia, country head, consumer banking at IndusInd Bank said today. Kathpadia added that only Karnataka saw some demand rise and they are meeting it.
Warned the Centre, RBI well in advance, say Andhra Padesh, Telangana
The state governments of Andhra Pradesh and Telangana say they had flagged their concerns to the union government and the Reserve Bank of India (RBI) well in advance, reported NDTV.
On February 14, Andhra Pradesh Chief Minister N Chandrababu Naidu wrote to Finance Minister Arun Jaitley, seeking that the RBI provide Rs 5,000 crore to the state that "is facing a serious shortage of higher and lower denomination currency notes".
"Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on March 1, 2018," Naidu wrote.
Govt is planning to supply additional Rs 1,000 cr to Bihar: Report
The government is planning to supply additional Rs 1,000 crore to Bihar to ease the ongoing cash crunch situation, reports ET NOW.
"About 86 percent ATMs across the country are functioning so far with nearly 90 percent ATMs functioning in Punjab, Haryana, Jammu and Kashmir, Maharashtra, Odisha and Tamil Nadu," sources told the channel.
Sources added that 70 percent ATMs are functional in Andhra Pradesh and Telangana and 66 percent are up and running in Bihar.
Only Bihar, Telangana with lower cash right now, says SBI Chairman
Only Bihar and Telangana are the two states with lower cash right now, SBI Chairman Rajnish Kumar told CNBC TV18 in an interview.
"We will try to normalise situation at SBI ATMs in Bihar and Telangana by tomorrow," Kumar said.
Kumar added that there has to be a sense of urgency in dealing with stressed assests, which is getting taking time due to delayed judgements in many NCLT cases.
"Part of cash crunch is real and other part is a result of hoarding", Patanjali's Acharya Balakrishna tells ET Now.
Average availability of cash in ATMs up to 82%, says SBI Chairman
Average availability of cash in ATMs has gone up to 82 percent from 74 percent, SBI Chairman Rajnish Kumar told CNBC TV18 in an interview.
The recaliberation of ATMs with Rs 200 notes will be completed by the month-end, Kumar added.
"We have seen lesser deposits in Telangana showing cash is not returning to system," Kumar explained, adding that the overall currency at macro level is higher than pre-demonetisation level.
I-T sleuths conduct raids on cash hoarders, amid RBI's supply push
Tax authorities have conducted 30-35 raids in Karnataka and parts of Andhra Pradesh to drive out cash hoarders amid the RBI's increased infusion of cash following currency shortage in several states, reported Economic Times.
RBI has pumped over Rs 800-900 crore in Bihar through the ATM network with initial assessments suggesting that the shortage may be tackled soon.
The problem seems to be more deep-rooted in Andhra and Telangana, where the department in viewing the role of large contractors.
Cash crunch may pace down India's fast-moving sectors
India’s fast-moving sector including consumer-facing companies may slow down as four states heading for assembly elections, and several surrounding ones, are facing a cash crunch, reported Economic Times.
It may also derail the just recovering buoyancy after the twin blows of demonetisation and GST implementation.
Elections are underway in Karnataka, and scheduled later in the year in Madhya Pradesh, Chhattisgarh, Rajasthan and Mizoram by January 2019. The general elections will be held by the summer of 2019.
Unusual spurt in demand for currency had led to many ATMs and banks running out of cash in Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telengana and poll-bound Karnataka and some other states in the past few days even as the government and the RBI assured the public that there was no currency shortage.
RBI should first acknowledge there's a cash shortage, says Praveen Chakravarty
RBI should first acknowledge that there's a cash shortage, Praveen Chakravarty, Chairman, Data Analytics, Congress told CNBC TV18 in an interview.
The RBI and the government must clarify if there's a demand related problem or a supply related one and explain where the problem is, Chakravarty added.
Demand-supply mismatch not the first time, says Rituraj Kishore Sinha
The mismatch between demand and supply of specific currency denominations is not the first time, Rituraj Kishore Sinha, Group Managing Director, SIS told CNBC TV18 in an interview.
A Rs 2,000 note is not conducive for high velocity and changes hands much less than a smaller denomination note Sinha added.