Saturday, 18 August, 2018

Adequate currency in circulation, shortage temporary: FM Arun Jaitley

ATM cash crisis Problem severe Income Tax dept roped in by government Adequate currency in circulation, shortage temporary: FM Arun Jaitley
Nellie Chapman | 17 April, 2018, 10:56

In a bid to allay the fears of cash shortage in the country, Finance Minister Arun Jaitley on Tuesday said there was more there adequate currency in circulation.

Below we have listed 10 developments reviewing the cash situation in India.

RBI report show that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore. The ministry officials also held consultations with state officials and bank heads in the wake of shortage of cash. Earlier, finance ministry officials had reportedly met with the RBI officials to take stock of the situation.

His junior minister SP Shukla told news agency ANI that there is a "problem that some states have less currency and others have more", promising that it will be solved in three days with both the government and the Reserve Bank of India working to "transfer currency from one state to other". "It'll be done in 3 days", Shukla said.

Reports pointed out that banks in Telangana and Andhra Pradesh witnessed long queues for closure of fixed deposits as well as withdrawal from saving bank accounts. Who are the persons creating shortfall of cash?

The cash crunch has given the opposition fresh ammo to hit out at the ruling BJP at the Center. The situation has been the same since 15 days.

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

He further said that the Centre has only Rs. 1,25,000 crores of cash currency as of now.

He had taken up the issue with the Union Government, Mr Chouhan added.

Public sector bank executives also said there is a spurt in demand for cash to make payments for agricultural activities as well. "The currency worth Rs 15,00,000 crore was in circulation before demonetisation". ATMs dried up in north Bihar due to issues related to transportation of cash from currency chests located in other parts of the state, officials said. "But notes of Rs 2,000 are missing from the market". "We have visited several ATMs today as well but to no avail". Many banking experts are of the view that cash, especially black money, is easier to store in Rs 2000 notes as notes of lower denominations need more space. This is a conspiracy to create problems. "The government will act tough on this", the Madhya Pradesh Chief Minister said.