Cash crunch is back as ATMs across India go dry: 10 points

Tuesday, 17 Apr, 2018

The cash crunch in few states in the country including Gujarat has become worse. Government has formed state-wise committee and RBI has also formed a committee to transfer currency from one state to the other.

The government, meanwhile, has been trying to encourage people to adopt cashless payment methods like debit cards, UPI and Aadhaar-Enabled Payments, but has had limited success so far.

"We've cash currency of Rs 1,25,000 cr right now. And the only party flush with cash is the BJP: the people suffer". Over all there is more than adequate currency in circulation and also available with the Banks. Due to shortage of cash in ATMs the routine works of common man hampered badly as the ATMs are not shelling currency notes.

According to reports, officials of the Finance Ministry held a meeting with the Reserve Bank of India to take stock of the situation. "We have visited several ATMs since yesterday but it is the situation everywhere", said a customer in Hyderabad. "The temporary shortage caused by sudden and unusual increase in some areas is being tackled quickly".

People from Bhopal in Madhya Pradesh claimed that the situation had been prevailing for the past 15 days. Similar situation is being faced by people in Vadodara, as people continue to face problem owing to cash crunch in ATMs.

The Manipur government also wrote a letter to the finance ministry apprising them of acute shortage of cash in the state. "We need to pay for the admission of children and purchase groceries & vegetables". They don't want to get money deposited in their accounts, as there are no ATMs for about 25 km.

While several states across the country have reported instances of ATMs going dry, the government has asked for at least three days to mitigate the lack of availability of currency.

"When demonetisation took place, markets were flooded with currency notes worth Rs 15 lakh crore. We are facing difficulty, don't know what to do". In some states, the recalibration of ATM machines to dispense 200 rupee currency notes is yet to be finished. Stating that this is a phenomenon experienced by "all banks" since November 2017, Purnima said, "We are unable to refill ATMs because people are not depositing in banks".