ATMs across the country have been reported to be out of cash or not working, on .Finance Minister Arun Jaitley today conceded a “temporary shortage in some areas” and said it was being “tackled quickly”. He also said he had reviewed the currency situation and there was “more than enough” in circulation and in banks. People have complained about a cash crunch in Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. Many have tweeted about not getting cash at ATMs in Delhi too, in a reminder of long queues and non-functioning machines after demonetization in November 2016.
Soon after an acute cash crunch was reported from parts of the country, Congress president Rahul Gandhi on Tuesday launched hit out on Prime Minister Narendra Modi saying that the latter has destroyed the banking system.
Citing instance of the multi-million Punjab National Bank (PNB) scam involving celebrity jeweller Nirav Modi, the Gandhi scion said that despite the Diamond merchant fleeing with Rs 30,000 crore, the Prime Minister kept calm and maintained silence.Taking a dig at demonetisation, the Congress chief alleged that PM Modi ceased the circulation of Rs 500 and Rs 1000 notes from the Indian markets and handed them over to Nirav Modi.
Officials of the Reserve Bank of India, who held a meeting with finance ministry officials, said cash was back in demand. “Earlier it was around Rs. 3000 per withdrawal, now it is Rs. 5000,” an official said.
People are hoarding cash, said sources in the RBI. “Currency in circulation has not grown despite growth in economy after the demonetisation in November 2016. Currency in circulation on November 4, 2016, was Rs. 17.74 lakh crore. Currency in circulation now stands at Rs. 18.04 lakh crore,” sources said.