SBI chairman Rajnish Kumar has pacified a majority of the public by stating that the cash crunch issue which has caused a huge amount of inconvenience to many will be resolved by tomorrow.
It is reported that tax authorities conducted 30-35 raids in Karnataka and parts of Andhra Pradesh as part of a drive to flush out cash hoarders, even as the centre and RBI were pumping in funds. But the problem is seen to be more situated in Andhra Pradesh and Telangana, where the role of large contractors is under the IT department’s lens.
Kumar said the money needs to be recycled, that if people withdraw money from the bank then the money needs to be deposited back as well. That is how the money cycle stays balanced. “If we (people) hold everything, then whatever supply we (banks) do, it will be insufficient for the country. So it is important that the currency is also recycled,” he said.
Kumar said that there are particular areas where there is an issue with the functioning of ATMs and availability of cash of particular denomination. The research note estimated that Rs 15,291 billion was withdrawn from ATMs through debit cards in the second half of FY18.
Union finance minister Arun Jaitley on Tuesday tweeted saying that the situation is temporary and the country has more than adequate currency.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
