Overall there is more than the adequate currency in circulation and also available with the banks.
He further said that the Centre has only Rs. 1,25,000 crores of cash currency as of now. RBI, which used to print Rs 500 crore to Rs 2,500 crore worth of 500-rupee notes every day, will now be printing Rs 7,000 to Rs 7,500 crore to meet the rising demand.
In Hyderabad itself, news agency ANI quoted people saying that they were not able to withdraw cash since few days. Big notes missing. Reminder of #DeMonetisation days.
"But demonetisation is one-and-a-half years earlier... if we had taken that growth path, we would had still been much higher". Mr Garg said, in a month, supply will be about 70 thousand to 75 thousand crore. "These notes alone can more than meet the demand of any month", he said.
The government has attributed the cash crunch to an "unusual spurt in currency demand", but it has not explained why there is such an unusual spurt now. Now, similar reports are coming from eastern Maharashtra, Bihar and Gujarat as well.
The government on Tuesday said that it has taken steps to ramp up the minting of Rs 500 currency notes by five times. On the other hand, the RBI said logistics and recalibration issues were limiting replenishments of ATMs, media reports said. "RBI is closely monitoring both these aspects" the central bank said.
Rajnish Kumar, chairman, State Bank of India assured that the situation of cash crunch is "tempo-rary".
The Finance Ministry's response came in the wake of reports of cash crunch in several Indian states due to non-availability of currency notes at automated teller machines (ATMs).
"This may have altered the demand for smaller denomination notes in a larger way to possibly substitute (more transactions) for the currency of larger denominations which are getting less".
"Rs 2,000 notes are circulating, but of late we have noticed there has been lesser inflow coming back in the circulation". "You can assume this is one note that is most suitable to hoard", he told reporters. These states are Madhya Pradesh, Telengana, Andhar Pradesh, north Bihar and Punjab. They blamed the cash shortage over fewer deposits and more withdrawals. "The government will act tough on this", he said.
Even as India was in a festive mood celebrating Vishu and Baisakhi, ATMs across the country went offline. While the Madhya Pradesh Chief Minister has called it a "conspiracy" to create problems for the Modi government, the Congress has termed it as a deliberate move by the BJP.
"Nirav Modi fled with Rs 30,000 crore and the prime minister did not utter a word".
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