Cash crunch at many ATMs across India
The cash crunch in few states in the country including Gujarat has become worse. With ATMs running dry, people are being reminded of the demonetization days. The problem seems to have affected ATMs in cities and towns across Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.
One reason for this could be that cash withdrawals at some bank branches and their ATMs are much higher than deposits made at those branches.
Government takes note
Meanwhile, Minister of State (MoS) for Finance Shiv Pratap Shukla said, “We’ve cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. Government has formed state-wise committee and RBI also formed committee to transfer the currency from one state to the other. It will be done in three days.”
Earlier, referring to reports of ATMs running out of cash at some places in his state, Madhya Pradesh Chief Minister Shivraj Singh Chouhan, on Tuesday, claimed that Rs 2,000 notes were vanishing from the market, and alleged that there is a ‘conspiracy’ behind their disappearance .
Addressing a farmers’ convention, Chouhan said: “The currency worth Rs 15,00,000 crore was in circulation before the demonetisation. After this exercise [demonetisation], the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market.”
Several states have faced cash shortages despite the fact that currency flows are now at the pre-demonetisation level. A recent analysis has found that the rate of the cash withdrawals were far more than the cash deposits at banks in the states like Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, Telangana and other states.
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