4/18/2018 5:01:42 PM
|written By : Team India Se|
The Reserve Bank of India (RBI) says there is no shortage of currency in the system even though it has ramped up printing of notes at its four presses.
The RBI, however, said there may be shortages in "some pockets", largely for logistical reasons.
"It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests. Nevertheless, printing of the notes has been ramped up in all the four note presses," it said in a statement on April 18.
There have been reports of currency shortages in several states, including Andhra Pradesh, Karnataka, Uttar Pradesh, Madhya Pradesh and Bihar.
Images of shuttered ATMs and helpless citizens have been making the rounds on Indian media, reminiscent of the aftermath of Prime Minister Narendra Modi's shock announcement in 2016 banning Rs 500 and Rs 1,000 notes.
The RBI said a shortage "may be felt" in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway.
"RBI is closely monitoring both these aspects," the central bank said.
India’s finance ministry said on April 17 there had been an “unusual spurt in currency demand in the country in the last three months”.
Currency in circulation increased by almost US$7 billion in the first 13 days of April, the ministry said, with “extraordinary demand” for cash in several states, including Karnataka, where state polls will be held early next month, reported the Financial Times.
The ministry pledged to supply “adequate currency notes to meet even higher levels of demand if such demand were to continue in the coming days/months”.