October 01, 2020

Cash crunch at banks for 5-6 days, admits Bihar Dy CM Sushil Modi; MP minister blames it on shortage of Rs 2K notes

Bihar Deputy Chief Minister and BJP leader Sushil Kumar Modi on Tuesday said that the shortage of cash in the state is going on for last 5-6 days even though Finance Minister Arun Jaitley said that there is ‘more than adequate’ currency in circulation.

Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and poll-bound Karnataka have reported shortage of currency and ATMs running down, which the government today attributed to unusual spurt in demand in last three months.

“From 5-6 days there has been a cash crunch at banks in Bihar, I spoke to officials at both RBI and banks, they said that in the next few days problem will be sorted,” said Sushil Kumar.

Meanwhile, Madhya Pradesh Finance Minister Jayant Kumar Malaiya claimed that the ongoing nationwide cash crunch was on account of a shortage of supply of Rs. 2000 currency denomination.

“This situation (cash crunch) is not restricted to the state, it is there in the entire country. It is true that the notes of Rs.2000, which amounts to a currency of Rs. 7 lakh crore have gone out of supply, thus leading to such a situation,” he told ANI.

Finance Minister Arun Jaitley said the “temporary shortage” in certain states is being “tackled quickly” and that there is “more than adequate” currency in circulation.

Jaitley, who has been away from office since April 2 due to kidney ailment, said he has reviewed the currency situation in the country.

“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,” he said in a tweet.

The government is checking with banks and the Reserve Bank of India to ensure adequate supply of currency.

A statement by the finance ministry confirmed reports of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts of the country.

“There has been unusual spurt in currency demand in the country in last three months,” it said.

Courtesy: DNA India

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