Claiming that bank staff is facing public anger due to cash crunch at banks and ATMs, the All-India Banks Employees Association (AIBEA) today threatened to launch an agitation as it blamed the government and the RBI for the situation.

The government and the Reserve Bank had assured the nation that the situation would normalise in three days. The central bank has decided to go in for a five-fold increase in the printing of Rs 500 notes to deal with cash shortages.

The authorities have said there's no shortage of cash, but ATMs do not have enough cash. It increasingly looks like demonetisation's after-effect.

At a time when the country is scrambling with cash crunch in several states across the country, BusinessToday.In finds out the real reasons which could be attributed to this cash shortage. The sudden and unexpected demand for cash has put the government and the Reserve Bank of India (RBI) on the back foot. Though efforts are on to pump in adequate money into the circulation, it's unclear when the situation will normalise.

The question experts are asking: Has the Indian economy post demonetisation been fed less cash to meet digitisation objectives? Has somebody advised the government or the RBI to do with less cash so as to push digital money?  

An SBI report has said that India's currency shortfall may be Rs 70,000 crore, which is nearly three times the government's estimate.

A recent RBI provisional figure report says the total outstanding money deposited in the country's banks by March 30 stood at Rs 114.75-lakh crore compared to Rs 107.58 lakh crore a year earlier, which is lowest in the past 54 years.

Nobody seems to know as to why the country is witnessing a cash crunch. The demonestisation is behind us. And the currency in circulation is at Rs 18.4 lakh crore, which is well over Rs 17.9 lakh crore at the time of note ban. But even this may not be enough to meet the rising demand of cash.

BusinessToday.In Editor Rajeev Dubey talks about how the country has run out of cash and how the government has failed to see the impending crisis. Several ATMs across the country have gone dry since cash crunch hit the nation.

The IMF's latest World Economic Outlook report shows that the country is on track to managing this feat. It expects India to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019, in line with its January forecast.

The RBI said shortage \"may be felt\" in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. Meanwhile, the printing of Rs 2,000 notes has also been halted for a past few days.

The International Monetary Fund (IMF) in the latest World Economic Outlook (WEO) has projected India to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019.

Outstanding deposits stood at Rs 114.75 lakh crore as on March 30, 2018, compared to Rs 107.58 lakh crore a year earlier, translating into a year-on-year growth of 6.7 per cent, according to provisional figures from the Reserve Bank of India.

In the wake of the cash shortage in the country, the Reserve Bank of India has decided to print more currency notes. Watch BusinessToday.In Editor Rajeev Dubey talk more about the central bank's decision and how it will help bridge the cash crunch gap in the country.