Thu, Apr 19, 2018
Cash crunch at ATMs: When asked about his opinion on National Company Law Tribunal (NCLT) working, Kumar said, "We should support it. NCLT is a good process and every new process or law takes time to stabilise. Every capitalist economy should have an Insolvency and Bankruptcy code." He added that in our country the law has been enacted a bit late and is taking its time to stabilise.
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Wed, Apr 18, 2018
Sanjeev Sanyal, Principal Economic Advisor, said, "see, it's natural, the demand for cash keeps on changing with time. But has seen a sudden rise in past 2-3 weeks and was triggered in some areas like Karnataka and Telangana. But it is nothing to panic over as there is plenty cash available with the Reserve Bank of India. We will find a solution to this cash crunch in few days."
To meet the unprecedented demand, the government is planning to step up supply of cash in the banking system. RBI, which used to print Rs 500 crore to Rs 2,500 crore worth of 500-rupee notes every day, will now be printing Rs 7,000 to Rs 7,500 crore to meet the rising demand. The fivefold jump in printing Rs 500 notes comes after economic affairs secretary Subhash Chandra Garg said that the government suspects that Rs 2,000 notes are being hoarded as they are not coming back into the circulation fast enough.
The total requirement of paper currency is 25,000 tonnes but that has not been met, sources said. The Centre has not attributed any particular reason for the cash dearth as ATMs dried up in many parts of the country and said it’s a temporary problem. “Overall there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ (in demand) in some areas is being tackled quickly,” Finance Minister Arun Jaitley said in a tweet.
Tue, Apr 17, 2018
In a bid to tackle the "unusual" currency demand, the government has also decided to increase printing of Rs 500 notes by five times. Taking stock of the situation the Reserve Bank of India (RBI) said there is sufficient cash in the RBI vaults and currency chests.
Fri, Mar 30, 2018
SBI alone has 2,200 ATMs in these two states, of which 1,500 are operated and maintained by the bank, and 700 are maintained by third parties with the cash being supplied by SBI. However, only 1,400 to 1,500 of its ATMs are operational, said the report.
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