As the Government has started working overtime to print new currency notes, cash crunch situation in many parts of the country reportedly showed signs of easing on Thursday.
It is understood that more than 86 per cent of ATMs are functioning normally as required cash are being transported to deficit areas, according to official sources.
Chairman of India’s largest bank, SBI, Rajnish Kumar assured that the problem would be resolved by Friday. “It is not a uniform cash crunch problem. It is there in States like Telangana and Bihar. We are hoping that the problem will be resolved by Friday because cash is in transition and it is reaching these States by Thursday evening,” the SBI chief told reporters here.
However, one of the officials said special arrangements are being made to transport cash to areas that during the last three days faced an unusual spurt in demand, 86 per cent of the 2.2 lakh ATMs were operational, dispensing cash.
“This was higher than 80 per cent operational ATMs on Wednesday and just 60 per cent working ATMs on Tuesday,” he said.
When asked about the inadequate availability of Rs 2,000 currency notes, the officials said it could be because of hoarding ahead of elections.
“Also, ATM cassettes had not been configured to dispense smaller sized Rs 200 notes,” the SBI chief said.
“The Government has ramped up printing of currency notes and is operating all the four presses 24x7.
The presses this week have been minting Rs 500 and Rs 200 notes without a break to meet an estimated Rs 70,000 crore of currency shortfall in the country,” he said.
Sources said on an average, four presses of Security Printing and Minting Corporation of India limited (SPMCIl) operate for 18-19 hours daily with a 3-4 hour break. But since the time ATMs ran dry, the presses are operating 24X7.
“Such overtime printing was last seen post demonetisation when the printing of new Rs 2,000 notes was fast-tracked to meet the liquidity shortage in the market,” it added.
The Reserve Bank of India (RBI) had on Tuesday stated that there is sufficient cash in its vaults and currency chests.
“Nevertheless, printing of the notes has been ramped up in all the 4 note presses.”
Holding accountable those who are hoarding cash, Kumar said the money should be recycled, meaning that if people withdraw money from the bank and the money needs to be deposited back as well. “If we hold everything, then whatever supply the banks do, it will be insufficient for the country. So it is important that the currency is also recycled,” he said.
Meanwhile, All-India Banks Employees Association (AIBEA) has threatened to launch an agitation saying bank employees were facing public anger due to the cash crunch. It blamed the government and the RBI for the situation.