Cash availability across the country is improving fast with over 80 per cent of 2.2 lakh ATMs operating normally, PTI reported. Last week, many states were hit by acute currency shortage due to insufficient cash supply. As per global norms, on an average 88 per cent of ATMs are functional and till yesterday, only 60 per cent ATMs had money.
The government and the Reserve Bank had assured the nation that the situation would normalise in three days. The central bank decided to go in for a five-fold increase in the printing of Rs 500 notes to deal with cash shortages. On Wednesday, Financial Services Secretary Rajiv Kumar said that about 10-12 per cent of the ATMs were out of cash and it may take another five to seven days to get back the supply.
India's largest lender SBI also said that cash availability at its ATMs has increased in the past 24 hours. However, the state-run bank in a report said that India's currency shortfall may be Rs 70,000 crore, which is nearly three times the government's estimate.
Speaking on the current situation, SBI Chairman Rajnish Kumar today said: "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 (Friday) because cash is in transition and it is reaching these states by today evening."
The government had earlier claimed that the 'sudden and unusual' spike in cash demand has been due to a Rs 45,000 crore demand for currency in the economy in the past two weeks as against the normal Rs 20,000 crore, implying the shortfall at just Rs 25,000 crore.
Reports of cash shortage first emerged from southern states Andhra and Telengana. Interestingly, Andhra Pradesh and Telegana which received highest cash supply in the country in the last two years faced cash shortage, indicating tendency to hoard high denomination currency notes.
According to the RBI data, during November 2016 to March 2017, Rs 82,168 crore was supplied to Hyderabad office of RBI which is the highest amongst all the offices of RBI in the country. Similarly, during April 2017 to February 2018, Rs 51,523 crore was supplied to Hyderabad office of RBI which was again the highest amongst all the offices of RBI.
(With inputs from PTI)