ATMs running dry: People fear ‘demonetization’-like situation, RBI sets up a panel

The RBI has received complaints from Delhi, Maharashtra, Karnataka, Gujarat, Rajasthan and Andhra Pradesh where ATMs are reportedly not working.

The ATMs in the several parts of the country are reportedly running dry causing panic amongst people. Taking it to social media, a lot of people have complained about the cash crunch they are facing invoking the memories of the early days of Demonetisation.

Taking cognizance of the increasing complaints, the Reserve Bank of India confirmed that few states in the country are facing the cash crunch situation. The RBI has received complaints from states like Delhi, Maharashtra, Karnataka, Gujarat, Rajasthan and Andhra Pradesh where ATMs are reportedly not working or simply running out of cash.

Sensing the widespread panic, Finance Minister Arun Jaitley took it to Twitter to assure the people that the cash shortage is “temporary”. Taking it to Twitter, Jaitley said that he has reviewed the currency situation in the country. He assured that there is more than the 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,” said Jaitley.

However, bankers believe that low amount of deposit and more withdrawal have led to the cash crunch. On the other hand, Minister of State SP Shukla informed that RBI has taken the cognizance of the issue and has set up a panel to consider the option of transfer of cash between states.

Talking to a news agency, 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.” Shukla further confirmed that the panel will come up with a decision within three days.

Following the cash crunch in Madhya Pradesh CM, Shivraj Chouhan suspected a conspiracy behind it. On Monday, Shivraj Singh said that after demonetisation, the currency in circulation increased to Rs 16,50,000 crore but notes of Rs 2,000 are missing from the market.

“Where are these notes of Rs 2,000 denomination are going, who are keeping them out of circulation? Who are the persons creating a shortfall of cash? This is a conspiracy to create problems,” Shivraj Singh asked. The Madhya Pradesh CM has also assured that his government will take a strict action on it.

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