<p>Calling the bluff on the cash crunch theory spun by the Central government, &nbsp;the state governments of Andhra Pradesh and Telangana say they had flagged their concerns to the union government and the Reserve Bank of India (RBI) well in advance.</p>

<p>Reports say on February 14, Andhra Pradesh Chief Minister N Chandrababu &nbsp;Naidu in a letter to the Finance Minister Arun Jaitley stated that the state "is facing a serious shortage of higher/lower denomination currency notes" and sought Rs. 5,000 crore from the RBI. &nbsp;</p>

<p>"Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on the 1st of March, 2018," Naidu wrote.</p>

<p>Farmers are unable to withdraw the money paid to them against procurement of food grains, the letter said, adding that the state needed Rs. 450 crore to pay pensioners and Rs. 2,500 crore towards monthly salary payments.</p>

<p>On Tuesday, Jaitley admitted to a "temporary" shortage of currency that he said was caused by "sudden and unusual increase" in some areas.&nbsp;</p>

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.</p>
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/986132137840693249?ref_src=twsrc%5Etfw">April 17, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<p>However, Telangana minister KT Rama Rao who claimed that the shortage of cash was "neither sudden nor temporary".</p>

<p>"I have been hearing complaints for over three months repeatedly in Hyderabad. Please have the RBI and finance ministry team dig deeper and not brush away an issue that is eroding people's confidence in banking system," Rao was quoted as saying.</p>

<p>On March 9, the Telangana chief secretary wrote to the RBI governor, highlighting the cash crisis in the state and requesting the supply of Rs. 6,000 crores for banks in the state.</p>

<p>Top officials say barely 30 to 40 per cent of ATMs in both the states have money and that urban areas are facing more cash crunch than rural areas.</p>

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">66% of ATMs are functional in Bihar. 77% ATMs are dispensing cash in Telengana, 70% ATMs are dispensing cash in Andhra Pradesh. Rs 51,000 Crore of cash supply to Hyderabad is the highest among all RBI offices during Apr 2017-Feb 2018: Finance Ministry Sources</p>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/986926644685430784?ref_src=twsrc%5Etfw">April 19, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">Close to 86% ATMs are functional & dispensing cash. Over 90% of ATMs are dispensing cash in Punjab, Haryana, J&K, Maharashtra, North East, Odisha, Tamil Nadu. Govt is planning to supply additional Rs 1000 Crore to Bihar: Finance Ministry sources</p>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/986926641980039168?ref_src=twsrc%5Etfw">April 19, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<p>&nbsp;</p>


"Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on the 1st of March, 2018," Naidu wrote.

Calling the bluff on the cash crunch theory spun by the Central government, the state governments of Andhra Pradesh and Telangana say they had flagged their concerns to the union government and the Reserve Bank of India (RBI) well in advance. Reports say on February 14, Andhra Pradesh Chief Minister N Chandrababu Naidu in a letter to the Finance Minister Arun Jaitley stated that the state "is facing a serious shortage of higher/lower denomination currency notes" and sought Rs. 5,000 crore from the RBI. "Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on the 1st of March, 2018," Naidu wrote. Farmers are unable to withdraw the money paid to them against procurement of food grains, the letter said, adding that the state needed Rs. 450 crore to pay pensioners and Rs. 2,500 crore towards monthly salary payments. On Tuesday, Jaitley admitted to a "temporary" shortage of currency that he said was caused by "sudden and unusual increase" in some areas. Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly. — Arun Jaitley (@arunjaitley) April 17, 2018 × However, Telangana minister KT Rama Rao who claimed that the shortage of cash was "neither sudden nor temporary". "I have been hearing complaints for over three months repeatedly in Hyderabad. Please have the RBI and finance ministry team dig deeper and not brush away an issue that is eroding people's confidence in banking system," Rao was quoted as saying. On March 9, the Telangana chief secretary wrote to the RBI governor, highlighting the cash crisis in the state and requesting the supply of Rs. 6,000 crores for banks in the state. Top officials say barely 30 to 40 per cent of ATMs in both the states have money and that urban areas are facing more cash crunch than rural areas. 66% of ATMs are functional in Bihar. 77% ATMs are dispensing cash in Telengana, 70% ATMs are dispensing cash in Andhra Pradesh. Rs 51,000 Crore of cash supply to Hyderabad is the highest among all RBI offices during Apr 2017-Feb 2018: Finance Ministry Sources — ANI (@ANI) April 19, 2018 × Close to 86% ATMs are functional & dispensing cash. Over 90% of ATMs are dispensing cash in Punjab, Haryana, J&K, Maharashtra, North East, Odisha, Tamil Nadu. Govt is planning to supply additional Rs 1000 Crore to Bihar: Finance Ministry sources — ANI (@ANI) April 19, 2018 ×

Andhra, Telangana punch holes in Centre's cash crunch theory

cash-crunch-theory

Cash Crunch Theory, News on Cash Crunch Theory, stories on Cash Crunch Theory, articles on Cash Crunch Theory, Cash Crunch Theory stories at Wion, Cash Crunch Theory news, Cash Crunch Theory latest news

cash crunch-theory

Andhra, Telangana punch holes in Centre's cash crunch theory