RBI Says There’s No Cash Crunch

Although the recent currency shortage and ATMs running dry, especially in Andhra Pradesh, Telangana, Karnataka, Bihar and Madhya Pradesh, have created a furore, the Reserve Bank of India (RBI) has assured there is no crisis. In a statement on April 17, it said, “There is sufficient cash in the RBI vaults and currency chests. Nevertheless, printing of the notes has been ramped up in all four note presses. The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. RBI is closely monitoring both these aspects.” There have been reports of unusually large cash withdrawals while deposits in FY2017/18 had been lowest in the last five decades and hence, the crisis in currency notes. Besides, RBI has also stopped printing `2,000 notes, leading to a cash shortage in some places.