Cash crunch is back as ATMs across India go dry: 10 points

The cash crunch in few states in the country including Gujarat has become worse. With ATMs running dry, people are being reminded of the demonetization days. However, to take a stock of situation, the Finance Ministry reportedly had a meeting with the Reserve Bank of India and other banks last week. Below we have listed 10 developments reviewing the cash situation in India.

1. According to a report in the Business Standard, a recent analysis by the RBI to the finance ministry found that the rate of cash withdrawal was far more than the cash deposits in banks in states such as Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana.

“We held a meeting with the RBI officials, banks, and states today (Thursday). There is no apparent cash crunch across states. Bihar and Manipur are facing some issues. Banks have been advised to optimise cash flow at ATMs well,” a senior finance ministry official told the newspaper.

2.“After the introduction of Rs 200 notes, there were also some issues related to recalibration of ATMs. Banks have been told to address the issue immediately,” a finance ministry official added.

3. Meanwhile, days after banks in Gujarat said they were not getting enough cash from the Reserve Bank of India, complaints started emerging about ATMs going dry. Complaints started coming in from small towns like Unjha and Jamna...

More on