Free Press Journal

India cash crunch updates: ‘Notes of Rs 2000 amounting to Rs 7 lakh crore have gone out of supply’


Two years after Prime Minister Narendra Modi announced demonetisation, a cash crunch has been reported in several states of India, including Karnataka, Andhra Pradesh, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh. Many people are tweeting about the non-availability of cash at ATMs. Madhya Pradesh Finance Minister, Jayant Kumar said, “It is true that the notes of Rs 2000 which amounts to a currency of 7 lakh crore have gone out of supply leading to such a situation”

Meanwhile, Finance Minister Arun Jaitley said ‘temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly’.

People in Delhi said, ‘We are facing cash crunch. Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. We are facing difficulty, don’t know what to do’.

In Gujarat, complaints about ATMs going dry started coming in from towns like Unjha and Jamnagar. Businessmen and farmers are the worst hit as the trading cycle has been affected adversely. Meanwhile, recently the Gujarat Urban Cooperative Bank had complained that not enough cash is available from the RBI. Unjha, in north Gujarat, the largest hub for trading of cumin, isabgul and fennel is also severely hit.

In Hyderabad office goers have told news agency ANI, that they have been unable to withdraw cash from ATMs in several parts of the city since yesterday. There are reports from Varanasi as well of people saying there is no cash at ATMs since yesterday.

Meanwhile, MoS for Uttar Pradesh SP Shukla quoted in ANI saying, “We’ve cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency & others have more. Govt has formed state-wise committee & RBI also formed a committee to transfer currency from one state to other. It’ll be done in 3 days.”

With ANI Inputs.