ATM cash crunch reported in many states, Arun Jaitley says problem temporary

Subhash Chandra Garg

ATM cash crunch reported in many states, Arun Jaitley says problem temporary

An alarmed chief minister of Madhya Pradesh, Shivraj Singh Chouhan, was quoted by ANI, "16.5 lakh crore notes were printed & circulated in markets, but where are Rs.2000 notes going?" When the cash shortfall was reported from Andhra Pradesh and Telangana in March, it was attributed by some to a misunderstanding of the Financial Resolution and Deposit Insurance Bill, which had a "bail in" clause where depositors would bear a portion of any losses. There is one problem that some states have less currency&others have more.Govt has formed state-wise committee & RBI also formed committee to transfer currency from one state to other.

Meanwhile, SP Shukla, Mos Finance has said, "We've cash currency of Rs 1,25,000 crore right now". This is a conspiracy to create problems and state government will take strict action on it. And the only party flush with cash is the BJP: "the people suffer", he tweeted. Most of the ATMs in Vadodara, Delhi, Bhopal, Varanasi and Hyderabad have run out of currency notes.

In Varanasi, people told ANI, "We do not know what or where the problem is but the common man is facing difficulty as the ATM kiosks are not dispensing cash". Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. Since the amount of currency put out by the Reserve Bank of India (RBI) and government printing presses is adequate for normal transactions, bankers believe there is hoarding of the Rs 2,000 notes.

"We held a meeting with the RBI officials, banks, and states today (Thursday)". They don't want to get money deposited in their accounts, as there are no ATMs for about 25 km.

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Some bank officials also believe the RBI has deliberately reduced cash supply to banks to force people to make digital payments and increase cashless transactions.

People from Bhopal in Madhya Pradesh claimed that the situation had been prevailing for the past 15 days.

The hashtag ATM trended on Twitter since Tuesday morning as people complained that they have had come away from ATMs without cash.

"The government is committed to protecting every depositor in public sector banks and therefore we need not create any fear psychosis", Finance Minister Arun Jaitley had said while replying to a discussion on 'Supplementary Demand for Grants - Second Batch for 2017-18'in Lok Sabha. In some states, the recalibration of ATM machines to dispense 200 rupee currency notes is yet to be finished.

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