'Unusual demand' reason for cash crunch, says govt

'Unusual demand' behind cash crunch, claims govt

'Unusual demand' behind cash crunch, claims govt

"We have visited several ATMs since yesterday but it is the situation everywhere", said a customer in Hyderabad.

The Reserve Bank on Tuesday denied that there is any currency shortage and clarified that there is sufficient cash in the central bank's vaults and currency chests. "The temporary shortage caused by "sudden and unusual increase" in some areas is being tackled quickly", finance minister Arun Jaitley wrote on micro blogging site Twitter.

Shortage of currency is being reported in many parts of Andhra Pradesh, Telangana, Maharashtra and Madhya Pradesh. The goverment also followed up his words by announcing that they have made a decision to increase printing of Rs 500 notes by five times With the rise in printing of the new currency notes, the government hopes to supply about 70,000-75,000 crore notes in a month's time. In the second scenario, the government should meet as much demand as is there, but that could create a new normal for currency usage.

If the Congress president is to be believed, the missing cash has been pocketed by diamantaire Nirav Modi, who left the country after allegedly defrauding the country of over Rs 11,000 crore. The supply of Rs500 notes will be stepped up in the next few days, said a government official who did not wish to be identified. "In a month, supply would be about 70000-75000 crores", Garg was quoted by ANI as saying.

People from Bhopal in Madhya Pradesh claimed that the situation had been prevailing for the past 15 days. "Modiji has destroyed the banking system", said Rahul Gandhi.

He had taken up the issue with the Union Government, Mr Chouhan added.

US strikes cripple Syria's chemical weapons ability: Pentagon
I support President Trump's limited action to target chemical weapons facilities and hold this brutal regime accountable. President Donald Trump announced airstrikes in retaliation for the country's alleged use of chemical weapons .

Meanwhile, the printing of Rs 2,000 notes has also been halted for a past few days.

People in the Indian capital New Delhi also said they were not getting cash out of the ATMs, bringing back memories of long queues and non-functioning machines after the government's cash-swap measure in November 2016.

Mr. Balasubramanian said generally two to two and half days of cash were loaded into the ATMs but that is not happening now.

Trinamool Congress leader Derek O'Brien called it "a financial emergency".

So, what could be the reason for the "sudden and unusual" cash crunch in the states?

Asked whether there was any hoarding of the Rs 2,000 notes, he said: "In this system, there are about 6.70 lakh crore worth of Rs 2,000 notes".

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