Cash in transit to reach states by Friday, assures SBI chief

RSTV Bureau
File photo of the ATMs. PTI

File photo of the ATMs.
PTI

Two days since the problem of cash crunch hit several cities across the country, SBI Chairman Rajnish Kumar said that the problem will be resolved by Friday as currency is being transported to areas which are facing the shortage.

Kumar said there are certain areas where there is a problem with running of ATMs and availability of cash of particular denomination.

“It is not a uniform cash crunch problem. It is there in geographies like Telangana and Bihar. We are hoping that the problem will be resolved by tomorrow because cash is in transition and it is reaching these states by today evening,” Kumar said.

As panic spread across states, including the poll-bound state of Karnataka, Finance Minister Arun Jaitley on Tuesday issued a statement saying that the government will do all that is needed to ease the situation, even as the RBI moved swiftly to print more currency notes.

The finance ministry said earlier this week that there is an unusual spurt in demand in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar. In the first 13 days of the current month, the currency demand went up by Rs 45,000 crore.

Economic Affairs Secretary Subhash Chandra Garg had also said that the government suspects that Rs 2,000 notes are being hoarded as they are not coming back into the circulation fast enough. To deal with currency shortage, the printing of Rs 500 notes have been increased five times.

Holding accountable those who are hoarding cash, Kumar said the money should be recycled, meaning that if people withdraw money from the bank, the money needs to be deposited back as well.

“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.

(With inputs from PTI)