No currency shortage, sufficient cash available in vaults, assures RBI

As several ATMs in the country ran out cash, the Reserve Bank of India said today that there is no currency shortage in the country as there is sufficient cash in vaults and currency chests.

"Printing of currency has been ramped up in all note presses, there has been shortage in some pockets due to logistical issues," the RBI said.

Several ATMs across the country especially in Telangana, Uttar Pradesh, Madhya Pradesh, Uttar Pradesh and Gujarat went without cash today as people struggled to take out money.

Finance minister Arun Jaitley said that he had reviewed the currency situation in the country adding that temporary shortage was caused by "sudden and unusual increase in some areas and is being tackled quickly".

Minister of State(MoS) for finance SP Shukla said that the problem was because some states had less currency and other states had less.

Meanwhile, Gujarat deputy chief minister Nitin Patel, who is also the state finance minister, acknowledged that banks are facing cash crunch and said the government is in touch with the RBI to ensure enough cash is supplied to banks.

The demand for cash has increased since this is the harvest and marriage season in the state.

Bank officials said they are getting only one-tenth of the required cash leaving them helpless to replenish the ATMs. This has especially affected farmer, the bank officials added.

The RBI report highlighted that the currency in circulation has reached the pre-demonetisation level of about Rs 17 trillion.

SBI chairman Rajnish Kumar attributed that issue to an "imbalance" due to the crop procurement season in Punjab, MP and UP where there is heightened demand.