Situation worsens in rural Gujarat

AHMEDABAD: The ongoing cash crunch in Gujarat worsened on Tuesday with several ATMs and banks running dry, especially in villages and the tribal belts, even though the

Centre played down the issue terming it as only

"temporary shortages".

Deputy chief minister

Nitin Patel, who is also the state finance minister, acknowledged that banks are facing cash crunch and said the government is in touch with the RBI to ensure enough cash is supplied to banks. The demand for cash has increased since this is the harvest and marriage season in the state.

Bank officials said they are getting only one-tenth of the required cash leaving them helpless to replenish the ATMs. This has especially affected farmers involved in cumin business, they said. Several ATMs in Ahmedabad and other cities remained dry on Tuesday, making it difficult for people to get cash for daily needs.

The situation is more acute in rural and tribal areas, bank officials and Opposition political leaders said, reports PTI.

"This is the fourth ATM that I am visited which has a "no cash" board outside. I need cash for business but I am not sure where I will get it," said an aggrieved Shashikant Sharma outside the Axis Bank branch near the Anjali Crossroad area in Ahmedabad. "I have to pay the rent and this is the third ATM that I visited since the past two days but none of them had cash," said another affected person standing outside a Union Bank ATM in Prahlad Nagar locality in the city. While some banks have put up "no cash" boards outside their ATMs, others have "ATM temporarily out of service" or "ATM under maintenance" boards.

General secretary of Maha Gujarat Bank Employees Association Janak Raval said banks in urban areas are getting only one-tenth of the cash required.

"Rural areas are the worst hit. North Gujarat is badly affected. People involved in cumin trade are helpless as most of their transactions are in cash," he said.

He said the state has been suffering since the past 10 days, but the matter has aggravated in the past few days.

Congress MLA from Patan Kirit Patel said the farmers are the worst hit. He said has written to the Union finance minister to make available immediately at least Rs 20 crore to banks so that farmers in north Gujarat do not suffer any more.

While some banks have put up "no cash" boards outside their ATMs, others have "ATM temporarily out of service" or "ATM under maintenance" boards.