Cash shortage likely to get worse in Delhi-NCR, Mumbai as ATMs run dry

As the problem of sudden cash crunch hits several states of the country, India's two major regions, the Delhi-NCR and Mumbai, can severely get affected in the coming days if the situation persists. According to sources in one of the largest private banks in the country, in the past one week the Delhi-NCR region received around 20 per cent of the cash supply it used to get on a daily basis. In the country's business capital, Mumbai, banks received in a week what they need on a daily basis. If immediate measures are not taken to pump in more money, the ATMs in these regions could run dry very soon.
 
The government has announced it plans to increase printing of notes by Rs 2,500 crore a day to tide over the crisis.
 
In the NCR, the last time a few large banks received cash from RBI was nearly 6 days ago, causing many ATMs to remain shut.
 
Another possible reason for cash shortage is believed to be the RBI order on movement of cash from cash-surplus circles to those short of currency. "A month back, the Reserve Bank of India (RBI) stopped banks from moving excess cash from one circle to the deficient circles. Hence, many circles have the excess cash supply while the others have nothing," said the source.

Also read: Demonetisation blues! 5 reasons why cash crunch has made a comeback

Acording to reports, banks are only providing more of Rs 200 and Rs 100 currency notes; only Rs 500 notes are also being curtailed. The All India Bank Officers' Confederation has also claimed there's been around 30-40 per cent cash crunch in the country, which has emerged due to the RBI's constant pressure towards 'digital economy'.
 
"We are facing a cash crunch. We are facing difficulty, don't know what to do," claimed a resident in the national capital, reported ANI.
 
At a given time, around 8 per cent of the country's ATMs are out of cash. Sources said at the country's biggest public sector bank SBI - that comprises 25 per cent of India's ATMs - about 16 per cent of the ATMs are running dry. In some pockets, the number has even reached 30 per cent. Experts suggest the scenario could also be similar in other larger banks as well.
 
The government on Tuesday blamed the 'unusual spurt in currency demand' in past three months for the cash shortage. A Ministry of Finance circular clarified the claim saying the currency supply increased by Rs 13,000 crore in the first 13 days of April.

Also read: Why the sudden cash crunch? Blame hoarding of Rs 2,000 notes, RBI's digital push, FRDI Bill