.jpg)
ATM cash crunch latest updates: The central government is holding a conference with the public sector banks over cash crunch. The centre says most of the ATMs will start working within a day.
The Aam Aadmi Party took a dig on Wednesday over the cash crunch across India and said that the Narendra Modi government has taken 'Cashless India' to another level.
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.
Meanwhile, Bank of India CEO Dinabandhu Mohapatra said that the cash situation is under control and that the central government has directed it to waive cash handling charges levied by banks.
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. However, Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar, Uttar Pradesh, Punjab and Chhattisgarh and poll-bound Karnataka have been reporting cash shortages at ATMs and banks
Maharashtra government has not received any reports of cash crunch in the state, finance minister Sudhir Mungantiwar said today 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.
"Government has also requested the RBI to provide the details of the prevailing cash situation at ATMs. We will get the report by Thursday, only then we will able to say if at all there is a cash crunch or not," he added.
Several parts of Andhra, Telangana, Madhya Pradesh, Bihar, Uttar Pradesh, Punjab and Chhattisgarh and poll-bound Karnataka have been reporting cash shortages at ATMs and banks for some time now, but Union finance minister Arun Jailey on Tuesday blamed this to an unusual spurt in demand in the past three months.
Denying that there is any shortage of currency in circulation, Jaitley said the "temporary shortage" in certain states is being "tackled quickly" and that there is "more than adequate" currency in circulation.
"Overall there is more than adequate currency in circulation and also available with the banks. The temporary shortage caused by 'sudden and unusual increase' (in demand) in some areas is being tackled quickly," he tweeted.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
Updated Date: Apr 18, 2018 16:37:55 IST
Highlights
Cash crunch to continue for next 5-7 days
Financial Services Secretary Rajiv Kumar said that the cash crunch in various parts of the country will be normalised in five to seven days, Business Standard reported.
The currency chests of the Reserve Bank of India have cash worth Rs 1.75 billion, which will be moved to ATMs across the country.
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
Govt says most of the ATMs will start working within a day
Congress leader Ashok Gehlot says govt has ruined banking system
Congress blames Narendra Modi govt for cash shortage
'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.
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."
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."
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.
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.
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.
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.
Click here to read more
'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.
More than adequate currency in circulation, says Arun Jaitley
"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.
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.
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.
Click here to read more
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.
Click here to read more
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
LIVE NEWS and UPDATES
13:47 (IST)
Cash crunch to continue for next 5-7 days
Financial Services Secretary Rajiv Kumar said that the cash crunch in various parts of the country will be normalised in five to seven days, Business Standard reported.
The currency chests of the Reserve Bank of India have cash worth Rs 1.75 billion, which will be moved to ATMs across the country.
14:12 (IST)
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.
12:54 (IST)
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.
12:44 (IST)
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.
12:28 (IST)
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.
12:20 (IST)
Bank of India says cash situation is under control
12:13 (IST)
Govt says most of the ATMs will start working within a day
12:01 (IST)
Congress leader Ashok Gehlot says govt has ruined banking system
11:55 (IST)
Congress blames Narendra Modi govt for cash shortage
11:24 (IST)
'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.
11:20 (IST)
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."
11:05 (IST)
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."
11:01 (IST)
10:47 (IST)
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.
10:23 (IST)
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.
10:19 (IST)
10:15 (IST)
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.
10:07 (IST)
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
10:03 (IST)
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.
09:46 (IST)
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
09:40 (IST)
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
09:38 (IST)
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.
Click here to read more
09:16 (IST)
'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.
09:12 (IST)
More than adequate currency in circulation, says Arun Jaitley
"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.
09:10 (IST)
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.
09:01 (IST)
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.
Click here to read more
08:34 (IST)
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.
Click here to read more
08:33 (IST)
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