Adequate currency in circulation, temporary shortage to be tackled quickly: FM

Finance Minister Arun Jaitley today said there is "more than adequate" currency in circulation and the temporary shortage in certain states is being "tackled quickly".

There have been reports of currency shortage in at least six states -- Gujarat, Eastern Mahashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana.

Jaitley said in a tweet that he has reviewed the currency situation in the country.

"Overall there is more than 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," Jaitley said.

Minister of State for Finance Shiv Pratap Shukla 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 2-3 days.

"The Government has set up state-wise committee and RBI has also formed a committee to transfer currency from one state to other because for money transfer you need the permission of the RBI. It (the shortage) will be solved in 2-3 days," Shukla said.

RBI report show that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore.