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Cash Crunch: ATM daily cash inflow plunges to 30%: CATMi

Cash Crunch: ATM daily cash inflow plunges to 30%: CATMi

The unusual spurt in currency demand since January was also met through reserves, he added. Today, Rs 16.5 lakh crore currency notes have been printed and circulated. "Have reviewed the currency situation in the country".

"The temporary shortage caused by a sudden and unusual increase in some areas is being tackled quickly", he added. The shortage of the cash in the banks specially in SBI worsened on Tuesday due to sudden rise of cash demand and short supply of cash from RBI.

Even as the SBI's Itanagar branch is struggling to temporarily address the cash crunch by remitting cash from its district branches, the crisis refuses to abate any time soon as is evident from similar reports from several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar, and poll-bound Karnataka.

Aparliamentary panel has called RBI Governor Urjit Patel on May 17 to answer queries on aspate of banking scams unearthed in the last few months, sources said. Deputy CM Nitin Patel, also the state finance minister, acknowledged that the banks are facing cash crunch and said that the government is in touch with the RBI to ensure enough cash is supplied to banks.

The newspaper stated that the cash released by banks to replenish ATMs dipped to around Rs 60,000 crore as of March 30 2016 from a high of Rs 71,000 crore in December 2017.

Govt has asked people not to panic, and have assured that the condition will normalize in the next 3 days.

"We have taken steps to increase the supply of currency in case the demand were to go up further. Last week, we sent cash through the RBI to North Gujarat and on Tuesday we sent currency to Surat", said J N Singh, the chief secretary of Gujarat. "The RBI has been given an indent to increase the flow of Rs 500 notes in the system", said Kumar.

The government also dismissed concerns over a lack of adequate supply of the high-value 2,000 rupee note while acknowledging early signs of hoarding.

Punjab National Bank, Bank of India and Canara Bank claimed that shortage of cash at their ATMs was limited to some regions only, and that they were dealing with the situation.

People in Hyderabad told news Agency ANI, "We have been unable to withdraw cash from ATMs as the kiosks (ATM Kiosk), in several parts of the city, have run out of cash". This time, the cash crunch is only at ATMs, suggesting a role for possible logistics issues.

One reason could be that since all the 2.2 lakh ATMs have not been recalibrated to dispense the new Rs 200 and Rs 50 notes, while at the same time Rs 2,000 notes are being phased out, cash is finding it hard to make its way to the people. One, there is a gap between supply and demand, Two, cash is king again.

While that demonetization exercise brought large sectors of the economy to a halt and hit businesses hard, India shrugged off the resulting slump to post 7.2% growth - faster than China's - in the quarter that ended in December.

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