Finance Minister Arun Jaitley on Tuesday said that there is more than adequate currency in circulation and with the banks after acknowledging that there have been reports of cash crunch in may states.
SBI Chairman Rajnish Kumar in an interview to CNBC-TV18 backed Jaitley's statement, saying that there is enough currency in circulation.
"Currency in circulation is at Rs 18.29 lakh crore. There is sufficient cash in the system,"Kumar said.
The Centre and the Reserve Bank of India (RBI) have stepped in to tackle the shortage of cash in several states.
"The government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other. It will be done in 3 days," state MoS Finance Shiv Shukla said.
Several areas in Assam, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh and Madhya Pradesh have reported shortage of currency in the past few days. Maharashtra, Bihar and Gujarat have also joined other states in the cash crunch.