ATMs across country go dry, Arun Jaitley says 'temporary shortage'

The Daily Fix Caste ire Kathua cash crunch – does BJP no longer have its finger on India’s pulse

The Congress has slammed Modi government, and even accused it of deliberately creating a situation of cash crunch in the country.

"Over all, there is more than adequate currency in circulation and also available with the banks", Mr. Jaitely said in a tweet.

According to RBI data, currency in circulation as on April 6 was Rs 18.17 lakh crore, which is close to the number at the time of demonetisation. RBI sources have said that "higher than normal withdrawal of cash" in these states have led to acute shortage of cash.

Mos Finance SP Shukla said that the Reserve Bank has formed a committee to transfer currency from one state to other. "In two-three days, this problem will be resolved", Minister of State in Finance Shiv Pratap Shukla told TV channels.

People in Madhya Pradesh, Delhi, Bihar, Gujarat and Telangana too have reported problems in withdrawing money from ATMs.

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"We are facing a cash crunch". "News reports say that ATMs around the country are running of out cash. We need to pay for the admission of children and purchase groceries & vegetables", said people in Varanasi.

The Centre on Tuesday admitted to the cash crunch and blamed it on uneven distribution of currency by the RBI across states. The situation has been the same for last 15 days.

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

Situation is worst in Madhya Pradesh where people are complaining that ATMs are non dispensing cash from the past 15 days. After this exercise (demonetisation), the currency in circulation increased to Rs 16,50,000 crore.

Chouhan added that he has taken up the issue with the Union Government. Nearly Rs 5 lakh crore worth of Rs 2,000 notes were printed after demonetisation. "The government will act tough on this". Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. This is a conspiracy to create problems. Farmers are told to transact cashlessly but are not willing, said office-bearers of local Agriculture Produce Marketing Committee. ATMs dried up in north Bihar due to issues related to transportation of cash from currency chests located in other parts of the state, officials said. "We have visited several ATMs since yesterday but it is the situation everywhere". "We are facing a lot of inconvenience in this heat".

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