Several states are facing a cash shortage despite currency flows in the economy at the pre-demonetisation level
A cash crunch has been reported in several states of India — Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. People are facing a huge monetary crisis, with a majority of automated teller machines (ATMs) running out of cash. In Bihar’s Patna several ATMs have gone ‘out of service’ causing inconvenience to the locals.
Taking stock of the situation,: “We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks… a temporary shortage caused by the sudden and unusual increase in some areas is being tackled.
Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.
2. Some ATMs not dispensing more than Rs 5,000: Only one ATM at State Bank of India’s branch had cash, but the machine was dispensing only up to Rs 5000 cash and that too only in the form of Rs 100 currency notes, according to The Times of India report.
The people in Delhi, on the other hand, said that most of the ATMs are dispensing only Rs 500 notes.
3.Hyderabad, Varanasi office-goers face troubles: In Hyderabad, office goers have told news agency ANI, that they have been unable to withdraw cash from ATMs in several parts of the city since yesterday. There are reports from Varanasi as well of people saying there is no cash at ATMs since yesterday, said TOI report.
However, people in Madhya Pradesh claimed that they have been facing a cash crunch for the last two weeks.
4. Govt’s meeting with RBI on cash shortage across states: The finance ministry held a meeting with the Reserve Bank of India (RBI), banks, and state government officials on Thursday to take stock of cash availability after receiving complaints of the dearth of money in some states. The non-release of funds by the Centre is being cited as one reason for the cash crunch.