No Cash in ATMs, FM Says Temporary Shortage

Ahead of Karnataka Assembly elections, there is a severe shortage of cash in ATMs in several parts of Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar. While common people are suffering heavily due to run out of cash, Finance Minister Arun Jaitley has called it as a "temporary shortage". He attributed it to the huge demand in the last three months.

What's more? Jaitley claimed that there is "more than adequate" currency in circulation. Jaitley, who has been away from office since April 2 due to a kidney ailment, 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," Jaitley said in a tweet.

The government is checking with banks and the Reserve Bank of India to ensure the adequate supply of currency. A statement by the finance ministry confirmed reports of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts of the country. "There has been the unusual spurt in currency demand in the country in last three months," it 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 a 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," he said.

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