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RBI denies cash crunch, says shortage due to logistical reasons

Unusual spurt in currency demand in states like Uttar Pradesh, Madhya Pradesh, Andhra Pradesh as well as poll-bound Karnataka led to dry ATMs in several parts of the country on Tuesday.

business Updated: Apr 17, 2018 20:54 IST
Press Trust of India
Press Trust of India
Press Trust of India, Mumbai
Cash crunch,RBI,ATM
Punjab National Bank ATM at Connaught Place in New Delhi.(Sonu Mehta/HT Photo)

The Reserve Bank on Tuesday said there is no shortage of currency in the system even though it has ramped up printing of notes at its four presses.

The RBI, however, said there may be shortages in “some pockets” largely due to logistical reason.

“It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests. Nevertheless, printing of the notes has been ramped up in all the four note presses,” it said in a statement.

The statement has come amid reports that several states, including Andhra Pradesh, Karnataka, Uttar Pradesh, Madhya Pradesh and Bihar.

Read: ATMs run out of cash in many states, Arun Jaitley says problem temporary

The RBI said shortage “may be felt” in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway.

“RBI is closely monitoring both these aspects,” the central bank said.

Further, as a matter of abundant precaution, RBI said it is also taking steps to move currency to areas that are witnessing unusually large cash withdrawals.

Read: ‘Cash crunch 2.0’ draws comparison to demonetisation on social media

Earlier in the day, Finance Minister Arun Jaitley had assured people that there was no shortage of currency as adequate stocks were available.

The Economic Affairs Secretary in New Delhi said printing of the 500 currency note is being increased by five times from Rs 500 crore a day to Rs 2,500 crore a day.

First Published: Apr 17, 2018 20:36 IST