RBI issues clarification on 'cash crunch'. Here's the official release

Faced by reports of 'cash crunch' in different parts of the country, the Reserve Bank of India (RBI) has clarified that there is no currency shortage.

In a press release, the central bank has written:

RBI clarifies that there is no currency shortage

It has been reported in a section of the media that there is shortage of currency in certain parts of the country. 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 4 note presses.

The 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.

Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals.

Jose J. Kattoor
Chief General Manager

Meanwhile, Republic TV has learnt that the RBI is all set to take immediate remedial action.

As per sources, the central bank will be rolling back its order issued last month where banks had been forbidden from sharing cash with their branches in other circles. This meant that if a particular bank branch had extra cash, it would not be able to transfer that cash to another branch outside the circle.

As a result of the order, there are reportedly still a number of branches which are cash rich, while others are crunched.

Meanwhile, in order to make all ATMs capable of dispensing Rs 200 notes, the RBI will undertake a massive re-calibration exercise in the next 36 hours. As per sources, 27% ATMs in the country are still incapable of dealing with the new Rs 200 notes.

Additionally, the RBI has already begun the process of printing new Rs 500 notes at five times the regular speed.

A massive political battle broke out on Tuesday as Opposition leaders raised a purported 'cash crunch' in the country with some likening it to Demonetisation. 

The Finance Minister and other authorities had responded by saying there was a temporary shortage in certain states.

READ: Is The 'cash Crunch' Real Or Not? Here Are All The Facts, Figures, Clarifications, Actions, Rumours, And Politics