ATM cash crunch LATEST updates: Govt meets PSBs, says most ATMS will be operational within 24hrs

Maharashtra govt says no cash crisis in state

Maharashtra government has not received any reports of cash crunch in the state, finance minister Sudhir Mungantiwar said on Tuesday but added that the
Reserve Bank has been requested to provide details of the prevailing cash situation in the state. 

“As of now, we have not received any complaints of cash shortages at ATMs in the state. However, this may be due to people not registering a complaint with us. Yet, if we receive any complaint, it will be taken up seriously,” Mungantiwar told PTI.

Banks, cash management firms blame the central bank for cash shortage

Bankers are reportedly not getting the full indent from the Reserve Bank of India (RBI) and hence they are unable to meet the demand of ATMs. According to Moneycontrol, there have been issues with the raw materials like ink and paper which has restricted currency printing.

Govt halts printing of Rs 2000 notes 

Department of Economic Affairs secretary Subhash Garg said that Rs 2000 note is not being printed for the past few days. He, however, added that this does not affect the overall supply of Rs 2,000 notes, Deccan Chronicle reported. 

The government suspects Rs 2,000 notes were being hoarded and it plans to increase five-fold the printing of Rs 500 notes. 

“Very soon, in the next couple of days, we will have a supply of about Rs 2,500 crore worth of Rs 500 notes per day. In a month, supply would be about Rs 70,000-75,000 crore. These notes alone can more than meet the demand of any month,” Garg was quoted as saying by PTI.

CATMI says banks not getting enough cash from the RBI

The Confederation of ATM Industry (CATMI) says that states like Maharashtra, Madhya Pradesh, Gujarat, Karnataka and Telangana are facing an acute shortage of cash. The confederation is yet to ascertain the reasons behind the crunch but it thinks that it might be due to banks not getting enough cash from the RBI. 

According to The Economic Times, bankers are concerned that people may start hoarding cash over fears that the cash shortage will last longer.

Bank of India says cash situation is under control 

#CashCrunch | Cash situation is under control; banks have adequate cash; Govt has asked to waive cash handling charges levied by banks, says Bank Of India pic.twitter.com/K8BliUJNLJ

— CNBC-TV18 (@CNBCTV18Live) April 18, 2018

Govt says most of the ATMs will start working within a day

Govt Official To CNBC-TV18 | Govt starts video conferencing with PSBs on cash situation; Above 80% ATMs will start functioning within a day #CashCrunch @Sapna_CNBC pic.twitter.com/O7LCEvUoGQ

— CNBC-TV18 (@CNBCTV18Live) April 18, 2018

Congress leader Ashok Gehlot says govt has ruined banking system 

As the ATMs across the country go dry, people are in trouble because of shortage of currency … Modi government has ruined the Banking system of the country and People have lost their faith in it. #CashCrunch

— Ashok Gehlot (@ashokgehlot51) April 17, 2018

Congress blames Narendra Modi govt for cash shortage 

As ATMs across the country bleed dry, it appears like the ghost of Modi Govt's demonetisation has returned to haunt the country. Who is to blame for this financial turmoil? #CashCrunch pic.twitter.com/bwBx2IxCth

— Congress (@INCIndia) April 17, 2018

‘Cashless India taken to another level’: AAP takes a dig at Narendra Modi govt

Taking a dig at the Narendra Modi government, the Aam Aadmi party on Wednesday shared a cartoon on Twitter and said that with the ATMs in several states reportedly drying up, the Centre has taken ‘Cashless India’ to another level.

Cashless India taken to another level by PM Narendra Modi...#NoCash in ATMs too. pic.twitter.com/yVu19OVenE

— AAP (@AamAadmiParty) April 18, 2018

Telangana minister KT Rama Rao says cash shortage neither sudden nor temporary

IT minister K T Rama Rao took up the issue of cash crush with Finance Minister Arun Jaitley, disagreeing with him that the cash shortage was temporary. In a reply to Jaitley’s tweet, Rao said, “Sir, with due respect the cash shortage in banks and ATMs is neither sudden nor temporary. I’ve been hearing complaints for over 3 months repeatedly in Hyderabad. Please have RBI and finance minister dig deeper and not brush away an issue that is eroding people’s confidence in banking system.”

Sir, with due respect the cash shortage in Banks & ATMs is neither sudden nor temporary. I’ve been hearing complaints for over 3 months repeatedly in Hyderabad

Pls have RBI & Fin Min team dig deeper & not brush away an issue that is eroding people’s confidence in banking system https://t.co/llHzY6kiox

— KTR (@KTRBRS) April 17, 2018

Bhopal resident says he visited more than 12 ATMs in search of cash

Bhopal is one of the cities in Madhya Pradesh affected by the shortage of notes in ATMs. ANI quoted a Bhopal resident as saying, “I have been to more than 12 ATMs since Tuesday, but none had cash. We are facing a lot of problems due to this.”

#MadhyaPradesh: People continue to face #CashCrunch, A resident of Bhopal says 'I have been to more than 12 ATMs since yesterday, but neither had money, we are facing a lot of problems due to this' pic.twitter.com/K25rRfkmWB

— ANI (@ANI) April 18, 2018

Chidambaram slams govt for cash crunch, says supply ‘arbitrarily reduced’

Senior Congress leader and former finance minister P Chidambaram slammed the government for the cash crunch in some parts of the country on Tuesday, saying cash supply had been “arbitrarily reduced”.

In a series of tweets, Chidambaram said as a rule, cash supply must grow at the same rate as the economy is growing and the government was obliged to provide as much cash as people need at any given time.

If RBI has injected sufficient cash, it is obliged to tell the people why there is a cash shortage.

— P. Chidambaram (@PChidambaram_IN) April 17, 2018

Amid cash crunch, Karnataka Police seize fake Indian currency notes with face value of Rs 7 crore

One person was arrested in Belagavi after the police seized fake Indian currency notes with the face value of Rs 7 crore. A case has been registered, reported ANI.

Karnataka: Police seized fake Indian currency notes with the face value of Rs 7 crore in Belagavi; One person arrested, case registered pic.twitter.com/chSueohEjr

— ANI (@ANI) April 18, 2018

No one trusts Modi government anymore, says Sitaram Yechury

​CPM leader Sitaram Yechury took to Twitter on Tuesday and held the Centre for the cash crunch. “This government which still has not been able to count the demonetised currency is asking us to trust its jumla that there is no cash crunch. After the demonetisation disaster, where goalposts were repeatedly shifted and deadlines changed, no one trusts the Modi government anymore,” he said.

This govt which still has not been able to count the demonetised currency is asking us to trust its Jumla that there is no cash crunch. After the demonetisation disaster where goalposts were repeatedly shifted and deadlines changed, no one trusts the Modi government anymore.

— Sitaram Yechury (@SitaramYechury) April 17, 2018

Jammu and Kashmir Bank restores cash supply in Kashmir 

Jammu and Kashmir Bank on Tuesday said it has restored sufficient cash supply in the valley with the timely support of Reserve Bank of India (RBI).

“Amid a scenario wherein most of the states in India are facing cash crunch and chain of ATMs stand cash starved, Jammu and Kashmir Bank with the timely support of Jammu Regional Office of Reserve Bank of India (RBI) has restored sufficient cash supply in the Kashmir Valley,” a spokesman of the bank said in a statement.

PTI

Rahul Gandhi’s ’terror of noteban’ jibe on cash crunch

Congress president Rahul Gandhi had on Tuesday said that the “terror of noteban” has once again gripped the country due to the reported shortage of cash in several states and accused prime minister Narendra Modi of destroying the country’s banking system with his demonetisation decision. 

समझो अब नोटबंदी का फरेब
आपका पैसा निरव मोदी की जेब

मोदीजी की क्या ‘माल्या’ माया
नोटबंदी का आतंक दोबारा छाया

देश के ATM सब फिर से खाली
बैंकों की क्या हालत कर डाली#CashCrunch

— Rahul Gandhi (@RahulGandhi) April 17, 2018

No clear reason given for cash crunch but Centre says RBI will ensure adequate supply of currency notes

The government and the central bank will ensure there is an adequate amount of currency notes, following reports that banks’ automated teller machines had run out of cash in different parts of the country, the government said.

Cash withdrawals go up during crop harvest season which is usually during March to April, and then during festival season in October, but there has been an unusual rise in currency demand in the last three months.

That is a source of worry for policymakers as a sustained heavy currency withdrawal suggests a return of cash hoarding by individuals, diluting the purpose of a massive note ban exercise by Prime Minister Narendra Modi in late 2016.

Click here to read more

Govt has asked to waive cash handling charges, says Bank of India CEO 

Bank of India CEO Dinabandhu Mohapatra told  CNBC TV-18 that the cash situation is under control and banks have adequate cash. “The government has asked to waive cash handling charges levied by banks,” he said.

Transporting currency to areas with unusually high cash withdrawals: RBI

The Reserve Bank of India on Tuesday said that it is “taking steps to move currency to areas” which have witnessed unusually large cash withdrawals. “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,” the RBI said in a statement.

“Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals.” According to the RBI, there “is sufficient cash in” its vaults and currency chests.

IANS

Madhya Pradesh press ramps up note printing

Amid a cash crunch affecting several states in the country, the Dewas-based Bank Note Press accelerated printing of currency notes to meet the demand.

From Tuesday, work started in three shifts which was earlier done in two shifts, according to an informed source. The press prints Rs 500 and Rs 2,000 denomination notes.

IANS

From cropping season demand to election funding needs, theories abound on cash crunch

A situation, supposedly similar to the one India faced in the days that followed the demonetisation announcement, surfaced in the country this week, with several ATMs running dry and banks putting up notices stating their ATM kiosks are not functioning.

ATM and point of sale (PoS) system service providers Firstpost spoke to shared a slew of reasons for the cash crunch. Primarily, banks have been unable to comply with the indent raised by service providers, raised on a daily basis to replenish ATMs, they said.

‘We need to pay school fees, purchase groceries’

Varanasi is one of the places in Uttar Pradesh that has reported shortage of currency notes in ATMs. Speaking to ANI, people in the city said that the ATMs are currently not dispensing cash. “We have visited 5-6 ATMs since Wednesday morning. We need to pay for the admission of children and purchase groceries & vegetables,” they said.

People in Varanasi say, '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'. pic.twitter.com/8eSGXU0NtU

— ANI UP/Uttarakhand (@ANINewsUP) April 17, 2018

More than adequate currency in circulation, says Arun Jaitley

Denying that there is any shortage of currency in circulation, Finance Minister Arun Jaitley said on Tuesday the “temporary shortage” in certain states is being “tackled quickly” and that there is “more than adequate” currency in circulation.

“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,” he said in a tweet.

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

Twitter thread on cash crunch holds RBI responsible

In a thread of tweets, a twitter user by the name James Wilson said that the RBI failed to circulate enough currency needed in the system. Here are few tweets from the thread.

Relax and look at the data.

India withdraws ₹2.4 to 2.5 lakh crores every month from ATMs alone. What is so big about 45K cores in 3 weeks then? https://t.co/WV7g7UIkW2

— James Wilson (@jamewils) April 17, 2018

India withdrawn ₹2.64 lakh crores from ATMs using debit cards in the month of December 2017.

In October 2016, this was ₹2.55 lakh crores & during Nov 2016 & Dec 2016 it was ₹1.23 lakh crores & 0.85 lakh crores. But it jumped to ₹2.26 LC in March 2017.

— James Wilson (@jamewils) April 17, 2018

Of course, elections naturally increase cash demand. But don't blame that alone for the #cashcrunch.

RBI failed to circulate enough currency needed in the system & hope they may do a course correction.

As per latest statistics as on 6/4/18,CIC is ₹18.425 LC, which is 1LC less!

— James Wilson (@jamewils) April 17, 2018

No one bothered to ask under what logic the same Government & RBI print currency notes at around 15% annual growth rate pre-Demon levels!

How system will sustain with less than 1.5% annual growth of CIC post DeMon?

Did digital transactions replace that much CIC?

No Qns pls 😉

— James Wilson (@jamewils) April 17, 2018

Delay in recalibration of cash vending machines for Rs 200 notes led to cash crunch, say sources

The delay in recalibration of cash vending machines to dispense Rs 200 notes is understood to be one of the reasons for the currency shortage in some parts of the country.

Following the introduction of Rs 200 notes by the Reserve Bank of India (RBI), it was decided that recalibration of ATMs (automated teller machines) for new notes would be done at a faster pace, sources said, adding the drive was soon started but got delayed in some parts of the country.

RBI, finance ministry were warned of cash crunch in March, but bank didn’t act on Andhra tipoff

​

Almost one-and-half months before the currency crisis exploded causing much distress to the aam aadmi, the Andhra Pradesh government had warned the Reserve Bank of India (RBI), Ministry of Finance and the State Bank of India (SBI) about the lurking threat.

Top sources told Firstpost that the Andhra Pradesh chief secretary Dinesh Kumar had written a communique on 9 March, 2018 about the currency crunch in certain pockets of the state and subsequently the Centre asked the RBI to take appropriate action.

ATMs are running dry across India; government says needs three days to fix problem

ATMs in several cities across the country, operated by both state-run and private banks, are reportedly running dry. The problem seems to have affected ATMs in cities and towns across Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.

One reason for this could be that cash withdrawals at some bank branches and their ATMs are much higher than deposits made at those branches — all amid regional elections.

While Finance Minister Arun Jaitley assured hassled customers that the government will resolve the problem ‘quickly’, West Bengal chief minister Mamata Banerjee, on Tuesday, said the situation reminded her of the demonetisation days.

Click here to read more