Assuaging concerns over currency shortage in ATMs (Automated Teller Machines), finance minister Arun Jaitley on Tuesday said there is more than adequate currency in circulation and the same is available with banks. Sources in the North Block ministry said the cash shortage was not alarming and there was no need to panic.
The government and Reserve Bank of India (RBI) officials had met and attributed the shortfall to unusual local demand in a few states and instructed banks to improve their cash management.
His junior minister SP Shukla told news agency ANI that there is a "problem that some states have less currency and others have more", promising that it will be solved in three days with both the government and the Reserve Bank of India working to "transfer currency from one state to other".
Commenting on the reports that banks are running short of cash in many states such as Andhra Pradesh, Uttar Pradesh, Bihar and Madhya Pradesh, Jaitley said he has reviewed the currency situation.
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Meanwhile, the RBI on Tuesday formed a committee to tide over the cash crunch crisis that has hit several states in the country.
"We do not know what or where the problem is but the common man is facing difficulty as the ATM Kiosks are not dispensing cash". The situation has been the same for last 15 days. Even BJP's own CM, Madhya Pradesh's Shivraj Singh Chouhan, alleged a "conspiracy" behind the disappearance of Rs 2000 currency notes.
In Madhya Pradesh, residents of Bhopal say that the cash crunch is troubling them for the past 15 days.
"We held a meeting with the RBI officials, banks, and states today (Thursday)". Where these notes of Rs. 2,000 denomination are going, who are keeping them out of circulation? Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs 500 notes. "Banks have been told to address the issue immediately", a finance ministry official added. Most of the ATMs are not dispensing cash, the ones which are dispensing, have only Rs. 500 notes. This is a conspiracy to create problems and state government will take strict action on it. ATMs in other areas like the posh Hazratganj, Indira Nagar and Shahnajaf Road have been run dry for the last two days. "The government will act tough on this", he said. "We are facing a lot of inconvenience in this heat".