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.
Apr 19, 09:30 AM (IST)
Opposition leader claims was unable to withdraw cash from ATMs in Amreli
Opposition leader Paresh Dhanani claimed that he could not withdraw cash from any ATMs in his hometown Amreli on Wednesday.
"Since there was no cash in the ATMs in my hometown, I have to take it from my wife. This government is not even allowing us to withdraw our own money while some businessmen are getting all the money and even managed to flee," he told a party gathering in Arvalli district.
Earlier, deputy chief minister Nitin Patel had acknowledged that banks were facing cash crunch and said the government was in touch with the RBI to ensure enough cash is supplied to banks. Bank officials had said they were getting only one- tenth of the required cash leaving them helpless to replenish ATMs.
Apr 19, 09:19 AM (IST)
Gujarat seeks Central, RBI help to tide over cash crunch
Gujarat chief minister Vijay Rupani on Wednesday expressed hope that the ongoing cash crunch in the state will end soon as the Centre and the Reserve Bank have given a positive response in this regard.
"The state government has already informed RBI about the issue. The chief secretary also had a talk with the Union finance secretary on the issue. We have also drawn the attention of central leadership, urging them to release more cash to the state," Rupani told reporters in Gandhinagar.
"We've been assured that the ongoing problem will be solved very soon" he added. Meanwhile, Opposition leader Paresh Dhanani claimed that he could not withdraw cash from any ATMs in his hometown Amreli on Wednesday.
Apr 19, 08:58 AM (IST)
PM Modi 'solely responsible' for cash crunch: Congress
The Congress on Wednesday alleged that Prime Minister Narendra Modi was "solely responsible" for the cash crunch in the country, claiming that it was a result of his demonetisation decision.
Congress leader Pawan Khera accused the government of doing politics instead of focussing on governance. Senior party leader and former finance minister also said the "ghost" of demonetisation had come to haunt the government and alleged that the Rs 2,000 notes were printed only to help hoarders. He also said there was a possibility that people had lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks.
Khera alleged that the government and its mouthpieces were coming up with fresh excuses daily, but they had to answer questions about where the people should keep their money as the cash crunch and scams had shattered their faith in the banking sector.
"This government is continuously doing cheap politics all day long and and is not focussing on governance. How will the country run like this? There is a cash crunch in the country and the government and its mouthpiece are coming out with new excuses and theories," he told reporters.
Khera alleged that the cash crunch was was a result of demonetisation for which the prime minister was solely responsible.
Apr 19, 08:55 AM (IST)
Govt's favour towards smaller denomination may lead to cash crunch, says S K Ghosh
The government is trying to change the currency composition in favour of smaller denomination notes, this forced shift may be leading to the cash crunch, S K Ghosh, Chief Economic Advisor, SBI told CNBC TV18 in an interview.
"The ATMs may not have the capacity to dispense many notes of smaller denomination," Ghosh added.
Apr 19, 08:45 AM (IST)
Mobile wallet companies see spike in digital transactions
Mobile wallet companies including Paytm, Mobikwik and Flipkart-owned PhonePe on Wednesday said they have seen a significant jump in digital transactions amid a recent currency shortage at ATMs and banks in some parts of the country.
One97 Communications, which owns the Paytm brand, said it has seen a 30 per cent surge in transactions from several cities across India compared to the last month. It added that this growth has been registered from major parts of states like Andhra Pradesh, Bihar, Gujarat, Assam, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana, among others.
"In the wake of the ongoing cash crunch, customers are using more of our services, which has led to phenomenal growth in money transfers and QR-based payments in the cities where the ATMs have gone dry," Paytm COO Kiran Vasireddy said.
According to government officials, cash position across the country is improving fast with over 80 percent of 2.2 lakh ATMs operating normally on Wednesday.
Upasana Taku, co-founder and director of MobiKwik, said the recent cash crunch has ensured that more customers are using mobile wallets for their payments. "Over the last few days, we have seen a surge of 27 percent in our digital payments as well as QR-based payments to merchants, primarily driven by the consumers in regions where the cash crunch is acute. We are also seeing a 33 per cent increase in KYC/e-KYC requests," she added.
A PhonePe spokesperson said the current cash shortage has led to a further spike in digital transactions on its platform.
> Senior Finance Ministry officials held video conferencing with public sector banks during which they have been asked to replenish the ATMs with 500 rupee notes.
> SBI said the cash availability has improved at its ATMs in the last 24 hours, while some other banks including PNB, Canara Bank and Axis Bank maintained the cash shortage was limited to select pockets.
> The RBI had also sought to allay concerns saying there was no currency shortage in the system and steps were being taken to ramp up printing of notes on Tuesday and to move currency to areas which are witnessing unusually large cash withdrawals.
> Former finance minister and senior Congress leader P Chidambaram, however, said the "ghost" of demonetisation has come back to haunt the government and the RBI and alleged that the Rs 2,000 notes were printed only to help hoarders. Chidambaram added there was a possibility that people have lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks. D
Apr 19, 08:39 AM (IST)
Opposition alleges Rs 2,000 notes for hoarders only; Banks say currency availability improving
Stepping up their attack on the government on the currency crunch issue, the Opposition on Wednesday alleged the Rs 2,000 notes were introduced only to help hoarders, even as banks asserted that the cash availability at ATMs have improved.
A report from SBI Research, a unit of the government-run banking behemoth State Bank of India, meanwhile pegged the total 'cash shortfall' in the system at about Rs 70,000 crore — an amount equivalent to a third of the monthly withdrawals at ATMs.
Officials asserted that the cash position is improving fast with over 80 percent of 2.2 lakh ATMs now operating normally — a day after the government admitted that an "unusual" spurt in cash demand had led to many ATMs running dry in several states including Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telangana and poll-bound Karnataka.
Apr 19, 08:25 AM (IST)
"Over 13 states are facing a cash crunch. Rs 7 lakh crores have gone out of supply. The govt has deprived people of the money they need during the wedding and sowing season."#CashCrunch#ATMsRunDry
Currency management sole domain of RBI, says D K Mittal
Currency management is the sole domain of RBI and the government has no role to play, D K Mittal, Former Secretary, Department Of Financial Services told CNBC TV18 in an interview.
"RBI has made a mistake in its anticipation of demand for currency notes," Mittal said.
Mittal added that it is not fair to say currency is not available in market as there have been no complaints that bank branches do not have notes.
Apr 19, 08:08 AM (IST)
Uttar Pradesh says no cash crisis, enough currency with all banks
The Uttar Pradesh government on Wednesday said there is no cash crunch in the state as RBI has made enough cash available with all leading banks.
"RBI Kanpur and Lucknow offices have made enough cash available for currency chests of banks. Main banks like SBI, Bank of Baroda, Union Bank of India, Central Bank, ICICI, HDFC have confirmed availability of enough cash in their currency chests," an official spokesperson said .
"RBI is continuously reviewing supply of currency in ATMs by banks. Cash is available in 17,000 bank branches in the state. There are 19,000 ATMs in the state and strict directives have been issued to ensure availability of cash in them," he said. He said that after media reports, the state government officials reviewed the situation with banks and found that the situation is normal.
Apr 19, 08:02 AM (IST)
India may need additional Rs 1 lakh crore to meet cash demand
India may need an additional Rs 70,000-1 lakh crore to meet the cash demand of the growing economy in the country, reported Economic Times.
Experts believe that it may take at least two weeks to print that much currency, however, the current cash shortage in some parts of the country may be overcome sooner as the Reserve Bank of India and banks gear up to plug gaps in cash-supply logistics.
highlights
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
#CashCrunch
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.
Opposition leader claims was unable to withdraw cash from ATMs in Amreli
Opposition leader Paresh Dhanani claimed that he could not withdraw cash from any ATMs in his hometown Amreli on Wednesday.
"Since there was no cash in the ATMs in my hometown, I have to take it from my wife. This government is not even allowing us to withdraw our own money while some businessmen are getting all the money and even managed to flee," he told a party gathering in Arvalli district.
Earlier, deputy chief minister Nitin Patel had acknowledged that banks were facing cash crunch and said the government was in touch with the RBI to ensure enough cash is supplied to banks. Bank officials had said they were getting only one- tenth of the required cash leaving them helpless to replenish ATMs.
Gujarat seeks Central, RBI help to tide over cash crunch
Gujarat chief minister Vijay Rupani on Wednesday expressed hope that the ongoing cash crunch in the state will end soon as the Centre and the Reserve Bank have given a positive response in this regard.
"The state government has already informed RBI about the issue. The chief secretary also had a talk with the Union finance secretary on the issue. We have also drawn the attention of central leadership, urging them to release more cash to the state," Rupani told reporters in Gandhinagar.
"We've been assured that the ongoing problem will be solved very soon" he added. Meanwhile, Opposition leader Paresh Dhanani claimed that he could not withdraw cash from any ATMs in his hometown Amreli on Wednesday.
PM Modi 'solely responsible' for cash crunch: Congress
The Congress on Wednesday alleged that Prime Minister Narendra Modi was "solely responsible" for the cash crunch in the country, claiming that it was a result of his demonetisation decision.
Congress leader Pawan Khera accused the government of doing politics instead of focussing on governance. Senior party leader and former finance minister also said the "ghost" of demonetisation had come to haunt the government and alleged that the Rs 2,000 notes were printed only to help hoarders. He also said there was a possibility that people had lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks.
Khera alleged that the government and its mouthpieces were coming up with fresh excuses daily, but they had to answer questions about where the people should keep their money as the cash crunch and scams had shattered their faith in the banking sector.
"This government is continuously doing cheap politics all day long and and is not focussing on governance. How will the country run like this? There is a cash crunch in the country and the government and its mouthpiece are coming out with new excuses and theories," he told reporters.
Khera alleged that the cash crunch was was a result of demonetisation for which the prime minister was solely responsible.
Govt's favour towards smaller denomination may lead to cash crunch, says S K Ghosh
The government is trying to change the currency composition in favour of smaller denomination notes, this forced shift may be leading to the cash crunch, S K Ghosh, Chief Economic Advisor, SBI told CNBC TV18 in an interview.
"The ATMs may not have the capacity to dispense many notes of smaller denomination," Ghosh added.
Mobile wallet companies see spike in digital transactions
Mobile wallet companies including Paytm, Mobikwik and Flipkart-owned PhonePe on Wednesday said they have seen a significant jump in digital transactions amid a recent currency shortage at ATMs and banks in some parts of the country.
One97 Communications, which owns the Paytm brand, said it has seen a 30 per cent surge in transactions from several cities across India compared to the last month. It added that this growth has been registered from major parts of states like Andhra Pradesh, Bihar, Gujarat, Assam, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana, among others.
"In the wake of the ongoing cash crunch, customers are using more of our services, which has led to phenomenal growth in money transfers and QR-based payments in the cities where the ATMs have gone dry," Paytm COO Kiran Vasireddy said.
According to government officials, cash position across the country is improving fast with over 80 percent of 2.2 lakh ATMs operating normally on Wednesday.
Upasana Taku, co-founder and director of MobiKwik, said the recent cash crunch has ensured that more customers are using mobile wallets for their payments. "Over the last few days, we have seen a surge of 27 percent in our digital payments as well as QR-based payments to merchants, primarily driven by the consumers in regions where the cash crunch is acute. We are also seeing a 33 per cent increase in KYC/e-KYC requests," she added.
A PhonePe spokesperson said the current cash shortage has led to a further spike in digital transactions on its platform.
A recap of yesterday's developments:
> Senior Finance Ministry officials held video conferencing with public sector banks during which they have been asked to replenish the ATMs with 500 rupee notes.
> SBI said the cash availability has improved at its ATMs in the last 24 hours, while some other banks including PNB, Canara Bank and Axis Bank maintained the cash shortage was limited to select pockets.
> The RBI had also sought to allay concerns saying there was no currency shortage in the system and steps were being taken to ramp up printing of notes on Tuesday and to move currency to areas which are witnessing unusually large cash withdrawals.
> Former finance minister and senior Congress leader P Chidambaram, however, said the "ghost" of demonetisation has come back to haunt the government and the RBI and alleged that the Rs 2,000 notes were printed only to help hoarders. Chidambaram added there was a possibility that people have lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks. D
Opposition alleges Rs 2,000 notes for hoarders only; Banks say currency availability improving
Stepping up their attack on the government on the currency crunch issue, the Opposition on Wednesday alleged the Rs 2,000 notes were introduced only to help hoarders, even as banks asserted that the cash availability at ATMs have improved.
A report from SBI Research, a unit of the government-run banking behemoth State Bank of India, meanwhile pegged the total 'cash shortfall' in the system at about Rs 70,000 crore — an amount equivalent to a third of the monthly withdrawals at ATMs.
Officials asserted that the cash position is improving fast with over 80 percent of 2.2 lakh ATMs now operating normally — a day after the government admitted that an "unusual" spurt in cash demand had led to many ATMs running dry in several states including Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telangana and poll-bound Karnataka.
Currency management sole domain of RBI, says D K Mittal
Currency management is the sole domain of RBI and the government has no role to play, D K Mittal, Former Secretary, Department Of Financial Services told CNBC TV18 in an interview.
"RBI has made a mistake in its anticipation of demand for currency notes," Mittal said.
Mittal added that it is not fair to say currency is not available in market as there have been no complaints that bank branches do not have notes.
Uttar Pradesh says no cash crisis, enough currency with all banks
The Uttar Pradesh government on Wednesday said there is no cash crunch in the state as RBI has made enough cash available with all leading banks.
"RBI Kanpur and Lucknow offices have made enough cash available for currency chests of banks. Main banks like SBI, Bank of Baroda, Union Bank of India, Central Bank, ICICI, HDFC have confirmed availability of enough cash in their currency chests," an official spokesperson said .
"RBI is continuously reviewing supply of currency in ATMs by banks. Cash is available in 17,000 bank branches in the state. There are 19,000 ATMs in the state and strict directives have been issued to ensure availability of cash in them," he said. He said that after media reports, the state government officials reviewed the situation with banks and found that the situation is normal.
India may need additional Rs 1 lakh crore to meet cash demand
India may need an additional Rs 70,000-1 lakh crore to meet the cash demand of the growing economy in the country, reported Economic Times.
Experts believe that it may take at least two weeks to print that much currency, however, the current cash shortage in some parts of the country may be overcome sooner as the Reserve Bank of India and banks gear up to plug gaps in cash-supply logistics.