"I have reviewed the currency situation in the country".
The sudden phenomenon has been rather weird because the cash in circulation today is more than what it was on November 4, 2016 - four days before Prime Minister Narendra Modi announced demonetisation of Rs 500 and Rs 1,000 notes, accounting for over 85 per cent of the total currency in circulation at that time. There is one problem that some states have less currency and others have more.
Singh also said that cash had been dispatched by the RBI upon special request to certain regions where there was acute shortage of cash.
The Ministry added that both the government and Reserve Bank of India "have taken all steps to meet this unusual demand". "We are facing a situation similar to the government had scrapped 500- and 1000 rupee notes that triggered a cash shortage", he said. There were reports past year that the central government had stopped printing Rs 2,000 notes months ago and does not plan to print more in the current fiscal. In the current month, in the first 13 days itself, the currency supply increased by Rs 45,000-crore. It happens across the party and candidates try to get as much cash to lure voters during the poll season. "In a month, supply would be about 70000-75000 crores", informed Garg. "Modiji has destroyed the banking system", said Rahul Gandhi. The entire country was sent in a panic wave as Prime Minister Narendra Modi chose to demonetize the economy by bringing in stability in the country.
What's causing the cash crunch and how can it be resolved?
According to the manager of nationalised bank in the city who wished to remain anaonymous, confirmed to CityToday that there was a cash crisis following short supply of money from the currency chests.
However, cash was being disbursed at bank branches as usual.
In Delhi, people have said only Rs 500 notes are coming out of the kiosks.
West Bengal Chief Minister Mamata Banerjee on Tuesday questioned whether a "financial emergency" was subtly imposed in the country. Last week, the Finance Ministry held a meeting with the RBI officials to ensure that there was no large-scale hoarding of cash which might set in panic among people. They blamed the cash shortage over fewer deposits and more withdrawals.
The State Bank of India said it was wrong to call it a currency shortage.
ATMs running dry again?
Addressing a farmers' convention, Chouhan said, "The currency worth Rs 15,00,000 crore was in circulation before demonetisation". But notes of Rs. 2,000 are missing from the market. He has been quoted as saying, "Where are these notes of Rs. 2,000 denomination going?" Who is trying to create a cash crunch? This is a conspiracy to create problems.