Several states are facing a cash shortage despite currency flows in the economy at the pre-demonetisation level
Severe cash crunch has been reported in several states of India – Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana, and automated teller machines (ATMs) in these regions are running dry. People are facing a huge monetary crisis, with a majority of ATMs running out of cash. In Bihar’s Patna, several ATMs have gone ‘out of service’ causing inconvenience to the locals. Taking stock of the situation, Union Finance Minister Arun Jaitley on Tuesday said the temporary shortage of currency caused by a sudden and unusual increase in some areas was being tackled.
“We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks… a temporary shortage caused by the sudden and unusual increase in some areas is being tackled,” Jaitley said. Congress President Rahul Gandhi slammed PM Modi for the cash crunch, saying: “Modi has destroyed the banking system.”
Rahul Gandhi said, “Nirav Modi fled with Rs 300 billion (Rs 30,000 crore) and Prime Minister didn’t utter a word. We were forced to stand in queues as he snatched Rs 500 and Rs 1,000 notes from our pockets and put in Nirav Modi’s pocket.”
The Congress chief also took a dig at BJP-led Central government’s slogan ‘Achhe Din’ and questioned as to when ‘these goods days’ were going to come. Not only Rahul Gandhi, terming the situation as “financial emergency”, Trinamool Congress MP Derek O’Brien said: “PM Modi had said that everything will be fine in 50 days, but it has now been more than 1.5 years, and there is still a cash crunch.”
Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:
1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.
Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.
Click here to read → ATM Crisis