RBI Clarifies There Is No Cash Shortage, Sufficient Money In Currency Chests

Brushing aside the reports of cash crunch in the ATMs of at least six states, the Reserve Bank of India (RBI) clarified on Tuesday evening that there is no cash shortage. "It has been reported in a section of the media that there is shortage of currency in certain parts of the country. It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests," said the central bank in a statement released on its website. However, the banking regulator further said that the printing of the notes has been ramped up in all the 4 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," the statement further reads.

Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals, the statement further reads. 

Even the finance ministry, in a press release, made it clear on Tuesday that there has been unusual spurt in currency demand in the country in last three months that led to the cash crunch. "In the current month, in the first 13 days itself, the currency supply increased by Rs.45000 crores. This unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar, reads the statement.

Union Finance Minister Arun Jaitley also assured that there is "more than adequate" currency in circulation and the temporary shortage in certain states is being "tackled quickly".

Jaitley said in a tweet that he has reviewed the currency situation in the country.

Shiv Pratap Shukla, Minister of State for Finance, also echoes the same sentiments as Jaitley's. Shukla said, "We have cash currency of Rs. 1,25,000 crore right now. There is one problem that some states have less currency and others have more. The government has formed state-wise committees and the RBI has also formed a committee to transfer currency from one state to other. It'll be done in three days."