Amid reports of a large number of ATMs running out of cash in several states and mounting opposition jibes, UP Finance minister Rajesh Agarwal said that there was enough currency in circulation and the temporary shortage at some places was being tackled promptly.
“I have spoken to Union Finance minister. It is a temporary shortage caused by ‘sudden and unusual increase’ in withdrawals due to rumours being spread in an organised manner to create panic. It is being tackled promptly,” said Agarwal. The minister asserted that there was no shortage of notes of Rs 2,000 and high value currency was available with banks in adequate quantity. He said that Chief Minister Yogi Adityanath has directed Chief Secretary Rajeev Kumar to keep a watch on the situation and be in touch with Reserve Bank of India and Union Finance ministry.
Agarwal said that Chief Treasury Officer of Kanpur, who deals on a daily basis with RBI, has been asked to ascertain whether there was shortage in flow of currency from the RBI to cash chests located in Uttar Pradesh. He admitted that there could be shortage in some parts of the state due to delay in transportation of currency from the RBI to the districts.
Meanwhile, Chief Secretary Rajeev Kumar said in luknow on Tuesday that there was no crisis like situation in any part of the state but admitted possible shortage of currency and dry ATMs in some districts. He said that the state government was in touch with RBI and Union Finance ministry and the situation was being handled on a top priority. A bank official said that the shortage was caused due to hoarding of Rs 2,000 notes as notes withdrawn from ATMs and banks were not returning to the banking system. “This was leading to a shortage and forcing banks to fill ATMs with Rs 500 and 200 notes,” he said. A trader leader of lucknow said that the situation could be compared to the demonetisation period of November, 2016. “Bank ATMs are running dry. We are facing a situation similar to the one when the Centre scrapped Rs 500 and Rs 1000 notes triggering cash shortage,” he said. Many ATMs across lucknow, have no cash including two right next to the RBI office in Gomti Nagar.
Meanwhile, Union minister of state for Finance Shiv Pratap Shukla said that there was no shortage of currency in the country and if there were such in some states, it would be solved in two to three days. ”A high-level committee has been set up to look into the sudden crisis. There is some of currency in some states and to solve it, the RBI would be transferring currency from other states,” he said.