In a tweet on Tuesday, the FM said that the currency situation in the country has been "reviewed" and assured the availability of "adequate currency in circulation".
Cash-starved customers in large numbers started queuing up outside ATMs and banks since early Tuesday morning to withdraw currency notes from vending machines, but a lot of them were either out of service or had a board notifying "no cash". Government has formed state-wise committee and RBI has also formed a committee to transfer currency from one state to the other. "We have cash currency of Rs.1,25,000 crores right now". Some states have less currency and the others have more.
The Centre on Tuesday admitted to the cash crunch and blamed it on uneven distribution of currency by the RBI across states. "It'll be done in 3 days", SP Shukla, Minister of State for Finance told ANI.
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There have been several reports that people are finding it hard to withdraw cash from ATMs, which either don't have the desired amount of cash, are empty, or only have 500 rs notes. ATMs are not dispensing cash.
According to media reports, states like Gujarat, Eastern Mahashtra, Madhya Pradesh, Bihar, Andhra Pradesh and Telangana are dealing with the issue of currency shortage as citizens are turned away by out-of-cash ATMs.
So, what could be the reason for the "sudden and unusual" cash crunch in the states? Earlier, finance ministry officials had reportedly met with the RBI officials to take stock of the situation. Madhya Pradesh Chief Minister Shivraj Singh Chouhan has alleged a conspiracy behind Rs. 2,000 notes vanishing from the market.
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Addressing a farmers' convention Shajapur, Chouhan said, "The currency worth Rs 15,00,000 crore was in circulation before demonetisation".
"News reports say that ATMs around the country are running of out cash". Who is trying to create a cash crunch? Meanwhile, the opposition Congress has asked if the cash crunch has taken place because of "deliberate move" of the government.
"Prior to note ban on November 8, 2016, the total value of Rs 500 and Rs 1000 denomination notes in circulation was Rs 17.74 lakh".
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"The government is committed to protecting every depositor in public sector banks and therefore we need not create any fear psychosis", Finance Minister Arun Jaitley had said while replying to a discussion on 'Supplementary Demand for Grants - Second Batch for 2017-18'in Lok Sabha.