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ATMs go dry in some states of India

Govt to increase production of notes to tackle shortage

Pallab Bhattacharya, New Delhi
Amid reports of a cash crunch in at least six states of India, Finance Minister Arun Jaitley yesterday said there is sufficient currency in circulation and the temporary shortage is being dealt with.
In a tweet, Jaitley said he has reviewed the currency situation in the country.
"Overall, there is more than the 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.
At least eight states - Gujarat Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana - have complained of a cash shortage. There have been reports of non-availability of cash in Delhi too. The cash crunch is a recall of a cash crisis after the demonetisation of Rs 1000 and Rs 500 notes in November 2016.
Shiv Pratap Shukla, state minister for finance, said the government has formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next two to three days.
He said the government has set up state-wise committees and the Reserve Bank of India has also formed a committee to transfer currency from one state to another.
An RBI report shows that the currency in circulation in India has reached the pre-demonetisation level of about Rs 17 lakh crore.
The assurance from the government came as many ATMs in the states have put up notices announcing that they have gone "out of cash" or "out of order".
The issue first came to light in the southern part of India when ATMs in parts of Telangana, Andhra Pradesh and Karnataka reported the scarcity for the last one week or so.
On Monday, Madhya Pradesh Chief Minister Shivraj Singh Chauhan alleged there was a conspiracy behind Rs 2000 notes disappearing from the market.
The government has decided to increase the production of currency notes by five times, reported the Indian Express. Main opposition Congress and the Left parties came down on the Narendra Modi government on the cash crunch issue.
The Congress has questioned whether the situation was the result of "gross mismanagement or a deliberate move"
Sitaram Yechury, general secretary of the Communist Party of India (M), tweeted ATMs are dry but the "only party flush with cash is the BJP."
Mamata Banerjee, chief minister of West Bengal, tweeted: "Is there a Financial Emergency going on in the country?"
Meanwhile, a parliamentary committee called RBI Governor Urjit Patel on May 17 to appear before it and answer questions on India's biggest banking scams unearthed in the last few months.