Cash crunch returns as ATMs in many states go dry

  • Cash crunch returns as ATMs in many states go dry

Cash crunch returns as ATMs in many states go dry

Sources in the finance ministry said the cash crunch was not alarming and there was no need to panic. Mr Jaitley in a tweet said that he has reviewed the currency situation in the country. "The temporary shortage caused by sudden and unusual increase in some areas is being tackled quickly".

Public sector bank executives also said there is a spurt in demand for cash to make payments for agricultural activities as well. "We can not do much unless RBI starts dispatching currency to the currency chest from where we get cash". An angry mob vandalised an ATM kiosk in Jammu and Kashmir's Kupwara district as several ATMs had gone dry there. "We hope the situation improves soon", said Jyotindra Mehta, chairman, Federation of Urban Cooperative Banks.

The Reserve Bank of India Tuesday formed a committee to tide over the cash crunch crisis that has hit a few states in the country. "It'll be done in 3 days", Shukla said.

There is another reason for cash shortage. ATMs are not dispensing cash.

"16.5 lakh crore notes were printed and circulated in markets, but where are Rs.2000 notes going?" Over all there is more than adequate currency in circulation and also available with the Banks. The issue was quick to take political overtones.

Some, meanwhile, are trying to link the curious phenomenon to the procurement of agricultural crop in certain states like Madhya Pradesh, while others see a link between the scarcity and the festival of Akshaya Tritiya that will be held tomorrow. Madhya Pradesh Chief Minister Shivraj Singh Chouhan has alleged a conspiracy behind Rs. 2,000 notes vanishing from the market. "Who is creating currency crunch?"

Efforts to take a version of the State Bank of India, with the largest number of ATMs, in the state did not yield any result. "We are in touch with centre also". And the only party flush with cash is the BJP: "the people suffer". They blamed the cash shortage over fewer deposits and more withdrawals. The biggest financial System further claimed that the situation will normalize in a day or two. "We have visited several ATMs today as well, to no avail".

People in Varanasi say, "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". We have visited five to six ATMs since morning.

Residents in Madhya Pradesh capital Bhopal have said many ATMs have had no cash for 15 days. Similar situation is being faced by people in Vadodara, as people continue to face problem owing to cash crunch in ATMs.