Amidst the cash crunch reports in many states in India including Gujarat and Uttar Pradesh, Union Finance Minister Arun Jaitley on Tuesday took to his Twitter account to assure that there is no cash crisis. Finance Minister Arun Jaitley tweeted that he had reviewed the cash situation.
Amidst the cash crunch reports in many states in India including Gujarat and Uttar Pradesh, Union Finance Minister Arun Jaitley on Tuesday took to his Twitter account to assure that there is no cash crisis. Finance Minister Arun Jaitley tweeted that he had reviewed the cash situation.
"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", Jaitley tweeted.
To take a stock of the situation, the Reserve Bank of India on Tuesday formed a committee to tide over the cash crunch crisis that has hit a few states in the country.
According to a report in the Business Standard, a recent analysis by the RBI to the finance ministry found that the rate of cash withdrawal was far more than the cash deposits in banks in states such as Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana.
Meanwhile, days after banks in Gujarat said they were not getting enough cash from the Reserve Bank of India, complaints started emerging about ATMs going dry. Complaints started coming in from small towns like Unjha and Jamnagar. Businessmen and farmers are the worst hit as the trading cycle has been affected adversely.
Finance MInister Arun Jaitley had blamed the temporary shortage on “sudden and unusual increase” withdrawals in some areas.
Recently, the cash situation has detoriated across India, last month the cash situation in Andhra Pradesh and Telangana got so detoriated that the banks have decided to get cash from Maharashtra and Kerala for Telangana and for Andhra Pradesh, it got transferred from Odisha and Tamil Nadu.
There is also a severe shortage of Rs 2,000 denomination currency notes as they are neither being supplied by the Reserve Bank of India since September 2017 to banks nor are they coming back from customers in the form of deposits, many media reports claimed.
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 "No cash crunch in India, temporary shortage being tackled, tweets FM Arun Jaitley")
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