Cash crunch: Government to increase production of currency notes by 5 times

Finance Minister Arun Jaitley has assured that that cash shortage is being tackled quickly.

New Delhi: Government will increase the production currency notes by five times in next couple of days as several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and Karnataka have reported shortage of currency and ATMs running down, SC Garg, Secretary, Department of Economic Affair said on Tuesday.

“We print about 500 crore of Rs 500 notes per day. We have taken steps to raise this production 5 times. In next couple of days, we will have supply of about 2500 crore of Rs 500 notes per day. In a month, supply would be about Rs 70000- Rs 75000 crore,” Garg said.

Earlier, Finance Minister Arun Jaitley said that cash shortage is being tackled quickly. “The temporary shortage caused by sudden and unusual increase in some areas is being tackled quickly,” Jaitley tweeted.

“Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks,” he added.

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

Earlier, MoS Finance SP Shukla said, “We've cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. Government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other. It will be done in 3 days.”

Customers have been queuing in large numbers outside ATMs and banks for the last few days in several cities to withdraw currency notes from vending machines, but most of them were either out of service or had a board notifying “no cash”. Many customer also went to the bank branches but several bank officials said that the banks' infrastructure has been unable to handle the huge rush resulting in long serpentine queue.

A group of 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. We have visited several ATMs since yesterday but it is the situation everywhere."

Similar statements were echoed in Uttar Pradesh's Varanasi where people said, "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. We have visited 5-6 ATMs since morning. We need to pay for the admission of children and purchase groceries & vegetables."

A few people outside ATMs in Delhi said, "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."