Cash Crunch: Jaitley assures adequate currency in circulation

RSTV Bureau
New Delhi: Finance Minister Arun Jaitley at Parliament House, January 29, 2018. PTI

New Delhi: File photo of Finance Minister Arun Jaitley at Parliament House. PTI

With several cities across the country witnessing cash crunch in the ATMs, Union Finance Minister Arun Jaitley assured that there is “more than adequate” currency in circulation and the temporary shortage in certain states is being “tackled quickly”. The Finance minister also told that he has reviewed the currency situation in the country.

There have been reports of currency shortage in at least six states — Gujarat, Eastern Mahashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana.

“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,” Jaitley said.

Minister of State for Finance Shiv Pratap Shukla said the government has formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next 2-3 days.

“The Government has set up state-wise committee and RBI has also formed a committee to transfer currency from one state to other because for money transfer you need the permission of the RBI. It (the shortage) will be solved in 2-3 days,” Shukla said.

The Reserve Bank report shows that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore.

Earlier on Monday, Madhya Pradesh Chief Minister Shivraj Singh Chouhan had claimed that Rs 2,000 notes were vanishing from the market, and alleged that there was a “conspiracy” behind it.

“The currency worth Rs 15,00,000 crore was in circulation before demonetisation. After this exercise (demonetisation), the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market,” he said.

“Where these notes of Rs 2,000 denomination are going, who are keeping them out of circulation? Who are the persons creating shortfall of cash? This is a conspiracy to create problems. The government will act tough on this,” Chouhan said.

(With inputs from PTI)