Cash crunch: Finance Minister Arun Jaitley says shortage is 'temporary'

People in many states are complaining of cash crunch at ATMs

People in many states are complaining of cash crunch at ATMs

"We were forced to stand in queues as he snatched 500-1000 rupee notes from our pockets and put in Nirav Modi's pocket", Rahul Gandhi said on the cash shortage. "We continue to have in stock adequate currency notes of all denominations, including of Rs 500, 200 and Rs 100 to meet any demand", the statement read.

According to Reserve Bank of India data, currency in circulation as on April 6 was Rs 18.17 lakh crore.

Cash-starved customers in large numbers started queuing up outside ATMs and banks since early morning today to withdraw currency notes from vending machines, but majority were either out of service or had a board notifying "no cash".

"We've cash currency of Rs1,25,000 cr right now".

"Mr Garg also dismissed rumours that the cash shortage is related to the recent scams in the banking sector, including one allegedly perpetrated by Nirav Modi or the Financial Resolution and Deposit Insurance (FRDI) Bill". While the Centre has argued that the grim situation is a result of "unusual spurt" in demand for cash, the Opposition is leaving no stone unturned to attack the Modi government over the current crisis.

Jaitley's deputy, Shiv Shukla, insisted that the problem would be resolved in the next two to three days.

Garg attributed the sudden cash demand to localised phenomena. A large number of ATMs failed to dispense cash to customers in Andhra Pradesh, Telangana, Madhya Pradesh, Maharashtra, Gujarat and Bihar. We have not got this investigated, but you can assume this is the one note which most suitable to hoard as this is a high value note.

An "out of cash" board outside an ATM in Vijayawada.

The hashtags #Cashcrunch and #ATMs are now trending in India, and here's what a few other people had to say on the issue of cash crunch. Most ATMs do not have cash. Therefore I would urge. every citizen not to hoard or stock cash - it is not required.

"16.5 lakh crore notes were printed and circulated in markets, but where are Rs.2000 notes going? In the next week, things will start coming back to normalcy".

Amid all this, people on Twitter shared their reactions.

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.

However, the fact that Rs 2,000 notes are being phased out is also part of speculation since no official statement regarding the same has been issued leaving it all to conjecture. This figure is close to the amount in circulation at the time of demonetisation.

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