Govt to raise printing of ₹500 notes after cash crunch

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Reports of a cash crunch in ATMs were coming from many parts of the country including the states of Maharashtra, Delhi, Madhya Pradesh, and Bihar on Monday after several areas of Telangana and Andhra Pradesh reported a shortage of currency from last one month.

The government is checking with banks and India’s monetary body Reserve Bank of India to make sure an adequate supply of currency.

Finance Minister Arun Jaitley said that there was more than the adequate currency in circulation and available with the banks. He blamed a sudden and unusual increase in cash withdrawal for the situation.

“We have cash currency of Rs 125000 crore now. There is one problem that some states have less currency and others have more. A panel has been formed and the matter will be fixed in three days,” said SP Shukla, Mos Finance.

Several leaders cutting across the political lines have trained guns on the center, saying that ATMs running dry was a reminder of demonetization days.

The government on Tuesday said that it has taken steps to ramp up the minting of Rs 500 currency notes by five times.

Briefing the media, S C Garg, Secretary, Department of Economic Affairs said, “We print about 500 crores of Rs 500 notes per day. We have taken steps to raise this production 5 times. In next couple of days, we’ll have a supply of about 2,500 crores of ₹500 notes per day. In a month, supply would be about 70,000-75,000 crore.

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