Cash crunch: RBI says there's no currency shortage; vaults and currency chests are well-stocked

Reports of cash shortages at ATMs across the country are doing the rounds, with people saying that some ATMs are running dry. There has been an unusual spurt in currency demand in the country over the last three months. In the first 13 days of April, currency demand jumped to Rs 45,000 crore. The unusual spurt in demand was witnessed in several cities and towns of Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar, according to media reports. [caption id=“attachment_4419497” align=“alignleft” width=“380”] Cash crunch: RBI says there’s no currency shortage; vaults and currency chests are well-stocked. Reuters image.[/caption] However, the Reserve Bank of India (RBI), on Tuesday, clarified that there is no currency shortage and added that there is sufficient cash in the central bank’s vaults and currency chests. The RBI, in a statement, said, “It has been reported in a section of the media that there is shortage of currency in certain parts of the country. It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests”. It further said that the printing of notes has been ramped up at all four printing presses. The central bank said: “The 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.” Further, as a matter of abundant precaution, the RBI said it is also taking steps to move currency to areas that are witnessing unusually large cash withdrawals.