Panic Sets In As Cash Vanishes From ATMs Across India; Govt. Says ‘Unusual’ Situation!
17 months later, the horrors of demonetisation seems to have returned, as ATMs all over India have gone dry.
On 8th November 2016, Govt. of India banned Rs 500 and Rs 1000 notes in a sweeping decision. The phase, known as demonetisation, saw long queues outside ATMs, as the common man tried hard to get hold of some cash. His own cash.
Now, 17 months later, the horrors of demonetisation seems to have returned, as ATMs all over India have gone dry. Cash has suddenly vanished, as Govt. has described this as an ‘unusual’ situation.
What exactly is happening here? Is Govt. taking any steps to improve the situation?
Cash Vanishes From ATMs; Unusual Situation?
In the last 72 hours, reports have emerged from all over the nation, that ATMs have gone dry, and there is no cash in 80% of the ATMs.
The issue started from Andhra Pradesh and Telangana states, where contractors are known to have a stronghold. And we all know, contractors deal with cash.
Soon, empty ATMs greeted consumers from Madhya Pradesh, Rajasthan, Delhi, UP and Bihar. The situation is some Southern states are said to be normal, but overall, people are finding it hard to withdraw money.
Govt. has described this as an unusual condition.
Govt.: We Will Print More Rs 500 Notes!
Suddenly, Rs 2000 currency have vanished, which has led to no cash boards outside ATMs.
There has been a string of responses from the Govt., as they are trying hard to normalize the situation. While RBI has said that this is a logistical issue, Govt. has asked RBI to increase printing of Rs 500 currency notes by 5 times.
Economic affairs secretary Subhash Chandra Garg has claimed that people are hoarding Rs 2000 notes, which has resulted in the cash crunch.
He said,
“There is also a perception that there may be a shortage of currency in the future. So people have started withdrawing and it has contributed to the crisis,”
Right now, Rs 500 crore worth of currency notes are being printed, daily, which will be increased to Rs 2500 crore, per day.
As per a statement from Ministry of Finance, the first 13 days of April saw cash demand increased to Rs 45,000 crore, which is certainly unusual. If we compare, then Rs 7,140 crore was the cash demand previous fortnight, and Rs 33,000 crore before that.
There are several rumours floating around, regarding this cash crunch, and we will strongly advise not to pay heed to such rumours, and fake news.
Govt has asked people not to panic, and have assured that the condition will normalize in the next 3 days.
Have you faced any issue while withdrawing money from ATMs?
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