The Finance Minister Arun Jaitley has acknowledged the sudden cash crunch across the country and has blamed it on the unusual spur in demand. The ATM machines across the country have no cash. Few are dispensing only Rs. 500 notes.
Dry ATM Machines Across The Country
This brings back the memories of demonetisation when we had to stand in long lines to withdraw money. As reported by the ANI, people in some states have been complaining that they have been facing cash crunch for over 15 days. Most ATM machines across the country are out of service.
“We are facing cash crunch. Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. We are facing difficulty, don’t know what to do,” said a citizen of Delhi, speaking to ANI.
Pratap Shukla, Minister of State Finance told ANI that the Reserve Bank of India (RBI) has formed a committee to transfer the currency from one state to another to curb the cash crunch.
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.
— Arun Jaitley (@arunjaitley) April 17, 2018
Shortage of Rs 2000 notes
With the proposed Financial Resolution and Deposit Insurance (FRDI) Bill in 2017, people did lose a bit of trust in the banking sector. The credibility of the banking sector of India dropped drastically when after Nirav Modi case. The experts believe that people are hoarding the Rs. 2000 currency notes.
It is also observed that the bank deposits have reduced in the last financial year compared to the previous one. Also, the credit grew compared to the previous year. This could be one of the reasons adding to the cash crunch.
Rahul Gandhi On Cash Crunch
The Congress President Rahul Gandhi said today that the Prime Minister Modi has destroyed the banking sector.
“Modi ji has destroyed the banking system. Nirav Modi fled with Rs 30,000 crore and Prime Minister didn’t utter a word,” Rahul Gandhi said.
Taking a jibe at Modi, Rahul Gandhi said, “We were forced to stand in queues as he snatched Rs 500-1,000 notes from our pockets and put in Nirav Modi’s pocket.”
Finance Minister Arun Jaitley however said that the situation was temporary and his team will tackle it soon.