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Monday, July 23, 2018

Cash crunch Highlights: ATMs go dry in some states, govt to increase printing of Rs 500 notes by five times

Finance Minister Arun Jaitley said there was "more than adequate" currency in circulation and the temporary shortage in certain states was being "tackled quickly".

By: Express Web Desk | New Delhi | Updated: April 17, 2018 9:07:26 pm
Cash crunch LIVE Updates: Rahul Gandhi accuses PM Modi of 'destroying' banking system, govt assures increasing production of currency notes As many as six states–Gujarat, eastern Maharashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana–have complained of cash shortage with ATMs across the country going dry. (Express photo by Abhinav Saha)

With several states reporting currency shortage, Union Finance Minister Arun Jaitley on Tuesday stepped in to allay fears insisting that “there is more than adequate currency in circulation”. “Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” Jaitley tweeted.

As many as six states–Gujarat, eastern Maharashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana–have complained of cash shortage with ATMs across the country going dry. There have been reports of non-availability of cash in Delhi too–a stark reminder of the post-demonetisation phase.

Several leaders cutting across the political lines have trained guns on the Centre, saying that ATMs running dry was a reminder of demonetisation days.

Live Blog

Follow LIVE Updates on cash crunch being reported from several parts of the country

Highlights

  • 15:34 (IST)

    While 'Saheb' PM Modi is enjoying abroad, people in India are looking for cash in banks: Congress

    Congress communications in-charge Randeep Surjewala also took a dig at the prime minister, saying 'while the 'saheb' is enjoying abroad, the country's people are looking for cash in banks'.

    -PTI

  • 14:51 (IST)

    Government to increase production of currency notes by five times

    "We print about 500 crores of Rs 500 notes per day. We have taken steps to raise this production by five times. In the next couple of days, we'll have a supply of about 2500 crore of Rs 500 notes per day. In a month, supply would be about 70000-75000 crore," ANI quotes SC Garg, Secretary, Department of Economic Affairs as saying. 

  • 14:30 (IST)

    Rahul Gandhi blames PM Modi for 'destroying' banking system

    Congress president Rahul Gandhi accused Prime Minister Narendra Modi of "destroying" the banking system.  "Modi Ji has destroyed the banking system. Nirav Modi fled with Rs 30,000 crore and PM didn't utter a word. We were forced to stand in queues as he snatched 500-1000 rupee notes from our pockets and put in Nirav Modi's pocket," Gandhi was quoted as saying by ANI while reacting on cash crunch. 

19:42 (IST) 17 Apr 2018
Printing of Rs 500 notes to be increased five times: Govt

The government earlier in the day had said the RBIwill increase five-fold the printing of Rs 500 notes to deal with cash shortages in certain parts of the country. Addressing a presser, Economic Affairs Secretary Subhash Chandra Garg said the government suspects that Rs 2,000 notes are being hoarded as they are not coming back into the circulation fast enough.

"We have taken steps to increase the supply of currency in case demand goes up... The currency printing (will increase) from Rs 500 crore to Rs 2,500 crore per day of Rs 500 note. "So in a month, we will be printing about Rs 70,000-Rs 75,000 crore. This should give you assurance that we are geared up to meet the rising demand," he said.

-PTI

19:39 (IST) 17 Apr 2018
People suffering due to cash crunch while BJP flushed with currency, says CPI (M)'s Sitaram Yechury

CPI(M) general secretary Sitaram Yechury has flayed the government in the wake of the recent cash crunch in several parts of the country and said that people were suffering while the only party flushed with currency was the BJP.

He said Prime Minister Narendra Modi's sudden decision to demonetise high-value currency notes in November 2016 did not end terrorism, corruption or the menace of fake currency, but it had hit the Indian economy hard.

-PTI

18:33 (IST) 17 Apr 2018
Cash crunch in Bihar since last 5-6 days: Bihar FM Sushil Modi

"From five-six days, there has been a cash crunch at banks in Bihar, I spoke to officials at both RBI and banks, they said that in the next few days problem will be sorted. RBI said less supply has caused a problem and it will be solved in a day or two," ANI quotes  Sushil Modi, Bihar Finance Minister, as saying. 

18:20 (IST) 17 Apr 2018
Why India is on US currency monitoring list

On April 13, the US Treasury Department delivered to Congress the semi-annual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States Treasury, which found that six major trading partners warrant placement on the ‘Monitoring List’ for their currency practices.  Five of these countries — China, Germany, Japan, Korea and Switzerland — were already on the list, India has been added this year. 

READ MORE | Simply Put: Why India is on US currency monitoring list

17:25 (IST) 17 Apr 2018
Country in grip of 'note-ban' terror again: Rahul Gandhi

Congress president Rahul Gandhi earlier in the day attacked the government and said that “terror of note ban” has once again gripped the nation. Gandhi accused Prime Minister Narendra Modi of destroying the country’s banking system owing to the decision of demonetisation.

READ MORE | Cash crunch: Rahul Gandhi attacks PM Modi, says country in grip of ‘note-ban’ terror again

16:25 (IST) 17 Apr 2018
cash crunch not just limited to MP but to entire nation: state FM Jayant Kumar Malaiya

"This situation is not restricted to the state, it is there in the entire country. It is true that the notes of Rs 2000 which amounts to a currency of 7 lakh crore have gone out of supply leading to such a situation," Jayant Kumar Malaiya, MP Finance Minister tells ANI.

15:34 (IST) 17 Apr 2018
While 'Saheb' PM Modi is enjoying abroad, people in India are looking for cash in banks: Congress

Congress communications in-charge Randeep Surjewala also took a dig at the prime minister, saying 'while the 'saheb' is enjoying abroad, the country's people are looking for cash in banks'.

-PTI

15:09 (IST) 17 Apr 2018
No currency shortage in country, says SBI chairman

SBI Chairman Rajnish Kumar has said 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 Punjab, Madhya Pradesh and Uttar Pradesh are seeing heightened demand due to procurement season.

-PTI

15:08 (IST) 17 Apr 2018

RBI report shows that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore.

15:04 (IST) 17 Apr 2018
State-wise committee formed to address problem, issue will be resolved in 2-3 days: MoS Finance

Minister of State for Finance Shiv Pratap Shukla has said the government has formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next two-three days.

"The government has set up a state-wise committee and RBI has also formed a committee to transfer currency from one state to other because for money transfer you need the permission of the RBI. It (the shortage) will be solved in two-three days," he said.

-PTI

14:59 (IST) 17 Apr 2018
Rs 2,000 notes are vanishing, MP CM says, alleges conspiracy

Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Monday claimed that Rs 2,000 notes were vanishing from the market, and alleged that there was a “conspiracy” behind it.

“The currency worth Rs 15,00,000 crore was in circulation before demonetisation. After this exercise (demonetisation), the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market.” He was apparently referring to news reports of ATMs running out of cash at some places in the state.

“Where these notes of Rs 2,000 denomination are going, who are keeping them out of circulation? Who are the persons creating shortfall of cash? This is a conspiracy to create problems. The government will act tough on this,” he said. He had taken up the issue with the Union Government, Chouhan added.

-PTI

14:51 (IST) 17 Apr 2018
Government to increase production of currency notes by five times

"We print about 500 crores of Rs 500 notes per day. We have taken steps to raise this production by five times. In the next couple of days, we'll have a supply of about 2500 crore of Rs 500 notes per day. In a month, supply would be about 70000-75000 crore," ANI quotes SC Garg, Secretary, Department of Economic Affairs as saying. 

14:33 (IST) 17 Apr 2018
Mamata sees currency shortage as a reminder of demonetisation
14:30 (IST) 17 Apr 2018
Rahul Gandhi blames PM Modi for 'destroying' banking system

Congress president Rahul Gandhi accused Prime Minister Narendra Modi of "destroying" the banking system.  "Modi Ji has destroyed the banking system. Nirav Modi fled with Rs 30,000 crore and PM didn't utter a word. We were forced to stand in queues as he snatched 500-1000 rupee notes from our pockets and put in Nirav Modi's pocket," Gandhi was quoted as saying by ANI while reacting on cash crunch. 

14:28 (IST) 17 Apr 2018
Govt, RBI have taken all steps to meet unusual demand of the currency: FinMin

There are reports of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts of the country. There has been unusual spurt in currency demand in the country in last three months. In the current month, in the first 13 days itself, the currency supply increased by Rs.45000 crores. This unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar.

The Government of India with the Reserve Bank of India have taken all steps to meet this unusual demand. We had adequate reserves of currency notes which have been used to meet fully the extraordinary demand generated so far. We continue to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand.

The Government would like to assure all the people that there have been adequate supply of currency notes which have met entire demand so far. The government would also like to assure that it would be supplying adequate currency notes to meet even higher levels of demand if such demand were to continue in the coming days/months.

The Government is taking all steps to ensure that ATMs are supplied with cash and to get non-functional ATMs normalised at the earliest.