What was said – April 2018 Cash Crisis in India

India has gone back in time to November 2016, when demonetization resulted in a major cash crisis around the country. There were different stances taken by the respective people in the Finance industry in India. The Policy Times looks at the differences in opinions this time around.

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What was said – April 2018 Cash Crisis in India
Image shows the very real impact of India's demonetization, people standing in queue in front of banks.

India has gone back in time to November 2016, when demonetization resulted in a major cash crisis around the country. There were different stances taken by the respective people in the Finance industry in India. The Policy Times looks at the differences in opinions this time around.

Finance Minister, Arun Jaitley tweeted-

“The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly, Overall, there is more than the adequate currency in circulation and also available with the banks”.

Telangana minister, KT Rama Rao replying to Arun Jaitley’s Tweet-

“Sir, with due respect the cash shortage in banks and ATMs is neither sudden nor temporary. I’ve been hearing complaints about over 3 months repeatedly in Hyderabad. Please have RBI and finance minister dig deeper and not brush away an issue that is eroding people’s confidence in the banking system”.

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Central Bank of India said –

“The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and recalibration of ATMs being still underway”.

Economic affairs secretary, Subhash Garg said –

“There is around Rs 18 lakh crore currency supply now, which is close to the circulation during the demonetization period. We keep Rs 2.5-3 lakh more currency in stock for excess demand”.

“This month, in the first 13 days alone, there has been the demand of about Rs 45,000 crore of currency”.

State Bank Of India Chairman,  Rajnish Kumar said –

“Before demonetization, the currency with the public and in the system was Rs 17.8 lakh crore, which has gone up to Rs 18.28 lakh crore, so where is the shortage?”

Principal Economic Advisor, Sanjeev Sanyal said –

“This is not Demonetisation 2.0 and nor is this, as some people have speculated, something to do with the standing of the banks. The banking sector is in absolutely no risk at all”.

Maharashtra government Finance Minister, Sudhir Mangantiwar said –

“As of now, we have not received any complaints of cash shortages at ATMs in the state. However, this may be due to people not registering a complaint with us. Yet, if we receive any complaint, it will be taken up seriously”.