ATMS run dry in some states; FM says temporary shortage
GOVT TO INCREASE PRINTING OF ₹500 NOTES BY 5 TIMES
NEW DELHI: Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and poll-bound Karnataka have reported a shortage of currency and ATMS running down, which the government on Tuesday attributed to unusual spurt in demand in last three months.
Union Finance Minister Arun Jaitley said the “temporary shortage” in certain states is being “tackled quickly” and that there is “more than adequate” currency in circulation.
“Overall there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ (in demand) in some areas is being tackled quickly,” he said in a tweet.
To meet the “unusual” currency demand in the country, the government has decided to increase printing of Rs 500 notes by five times, Economic Affairs Secretary Subhash Chandra Garg said here on Tuesday.
“We have taken steps to increase the supply of currency in case the demand was to go up further. To give you an example, Rs 500 notes -- we print about 500 crore of notes per day. We have taken steps to raise this production five times,” Garg said at a press meet called to calm fears after reports of currency shortages emerged from several parts of the country.
The Reserve Bank said in a notification that there is no currency shortage and clarified that there is sufficient cash in the central bank’s vaults and currency chests. RBI also said that printing of the notes had been ramped up in all four note presses.
Minister of State for Finance Shiv Pratap Shukla said the government had formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next 2-3 days.
Income tax officials have been roped in to probe the surge in cash withdrawals that is believed to have contributed to ATMS running out of cash in several parts of the country, a top government official said.
Congress president Rahul Gandhi on Tuesday said the “terror of note ban” has again gripped the country and accused Prime Minister Narendra Modi of destroying the country’s banking system with his demonetisation decision.
Reacting to reports of currency shortage in some states, West Bengal Chief Minister Mamata Banerjee on Tuesday said the development was a reminder of demonetisation days.
“Seeing reports of ATMS running out of cash in several States. Big notes are missing. A reminder of #Demonetisation days. Is there a Financial Emergency going on in the country? #Cashcrunch #Cashlessatms,” she said in a tweet.
NEW DELHI/AMETHI/
KOLKATA: Opposition parties on Tuesday slammed the government over cash crunch in ATMS and banks in several parts of the country, saying the "terror of note ban" has returned to haunt the people and dubbed the situation as a "financial emergency".
On the back foot, the government attributed the cash shortage to an unusual spurt in demand in last three months, and Finance Minister Arun Jaitley said the "temporary shortage" in certain states is being "tackled quickly" and that there is "more than adequate" currency in circulation.
Currency shortage was reported from several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Bihar and poll-bound Karnataka, among other states. Several ATMS in the national capital also saw long queues and soon ran out of cash.
In his Lok Sabha constituency Amethi, Congress President Rahul Gandhi said the "terror of note-ban" has again gripped the country and accused Prime Minister Narendra Modi of destroying the banking system with his demonetisation decision.
The Congress chief also took to Twitter to attack Modi, alleging he "snatched" the Rs 500/1000 currency notes from the pocket of every Indian and "gave" it to Nirav Modi, but was neither speaking a word about it nor facing Parliament.
Nirav Modi, an accused in the alleged Rs 12,700crore scam at state-run Punjab National Bank, has been absconding.
In Kolkata, West Bengal Chief Minister Mamata Banerjee said the cash crunch was a reminder of the demonetisation days.
"Seeing reports of ATMS running out of cash in several states. Big notes missing. Reminder of Demonetisation days. Is there a Financial Emergency going on in the country?" she said in a tweet.
CASH CRUNCH
CPI (M) leader Sitaram Yechury said, "ATMS were empty in November 2016. ATMS are empty now. And the only party flush with cash is the BJP: People suffer."
Referring to the government's demonetisation decision in November 2016, when the government had announced withdrawal of the then Rs 500/1000 notes and subsequently introduced new Rs 2,000 notes, Yechury said the country is still paying the price of "a sudden midnight Firman (order) of demonetisation".
In a series of tweets, he said the demonetisation did not kill terrorism and it did not kill corruption or fake currency either.
"But it has certainly killed the Indian economy. The cash crisis tells us how Modi's demonetisation disaster is still wreaking havoc," he added.
In a statement, the Finance Ministry acknowledged there has been an unusual spurt in currency demand in the country in last three months, but did not give specific reasons. It has also decided to ramp up the supply of new Rs 500 notes, even as reports suggested that Rs 2,000 notes, which was easier to hoard, were particularly impacted by the shortage.
While currency supply increased by Rs 45,000 crore in the first 13 days of April, "unusual spurt in demand" was seen more in some parts of Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar, the ministry said.
Minister of State for Finance Shiv Pratap Shukla said the government has formed statewise committees and the issue would be resolved in next 2-3 days. Besides, the RBI has also formed a committee to transfer currency from cash-surplus states to the others, he said.
Countering the government's stand, Yechury said, "This government which still has not been able to count the demonetised currency is asking us to trust its Jumla that there is no cash crunch."
"After the demonetisation disaster where goalposts were repeatedly shifted and deadlines changed, no one trusts the Modi government anymore," the Left leader tweeted.
Firebrand student leader Kanhaiya Kumar also took swipe at Jaitley, saying, "Dear Finance Minister, cashless economy does not eman cashless banks and cashless ATMS. We hope you understand."