Demonetisation: Govt monitors situation across the country

RSTV Bureau
Kolkata: People stand in a long queue outside the United Bank of India branch in Kolkata, Nov 16, 2016. Photo - PTI

Kolkata: People stand in a long queue outside the United Bank of India branch in Kolkata, Nov 16, 2016.
Photo – PTI

The Union Home Ministry is reviewing situation across the country every two hours following government’s demonetisation move. While no violence has been reported, the ministry has advised the states to take all precautions.

The Home Ministry control room is in touch with control rooms of all states and Union Territories and taking inputs on the prevailing situation every two hours, a senior official told, reported the news agency PTI.

“We have conveyed to the states that if they require any assistance, we will provide that immediately,” the official said.

Three top officials of the Home Ministry are in regular touch with DGPs of all states and taking feedback from them. Also, the Centre has asked all states to ensure proper security at all banks, ATMs and vehicles transporting cash.

Meanwhile, intelligence agencies have also prepared a report based on the situation.

Mumbai: People stand in long queues outside a bank to exchange their old Rs 500 and 1000 notes in Bhiwandi, Mumbai in Wednesday, Nov 16, 2016. Photo - PTI

Mumbai: People stand in long queues outside a bank to exchange their old Rs 500 and 1000 notes in Bhiwandi, Mumbai in Wednesday, Nov 16, 2016.
Photo – PTI

According to the report, there is an unprecedented situation due to a huge gap in demand and supply of currency notes. The cash crunch in banks and ATMs is expected to continue for at least one more week, said the report.

The report also raised that people are hoarding smaller denomination and not spending Rs 100 notes which they are getting either after exchanging the defunct Rs 500 or Rs 1,000 currency notes or from the ATMs. Due to huge gap in demand and supply of currency, the cash shortage will continue for at least one more week.

The centre is expecting the financial situation to be normal in the next few days. The Reserve Bank of India had said that currency printing presses are running at “full capacity” to sustain demand for new notes.

Adequate stock of all currency notes has been kept ready at more than 4,000 locations across the country, and bank branches are linked to them for sourcing their requirements, RBI said.