Finance Minister Arun Jaitley Inaugurated the New Bank Note Paper Line at Security Paper Mill

[Hindustani78]

Ministry of Finance
Government reviews the currency circulation in the country.

Government and RBI have taken all steps to meet unusual demand of the currency.

Adequate reserves of currency to meet the rising demands.

Non Functional ATMS to be normalized soon.
Posted On: 17 APR 2018 1:41PM by PIB Delhi

There are reports of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts of the country.

There has been unusual spurt in currency demand in the country in last three months. In the current month, in the first 13 days itself, the currency supply increased by Rs.45000 crores. This unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar.

The Government of India with the Reserve Bank of India have taken all steps to meet this unusual demand. We had adequate reserves of currency notes which have been used to meet fully the extraordinary demand generated so far. We continue to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand.

The Government would like to assure all the people that there have been adequate supply of currency notes which have met entire demand so far. The government would also like to assure that it would be supplying adequate currency notes to meet even higher levels of demand if such demand were to continue in the coming days/months.

The Government is taking all steps to ensure that ATMs are supplied with cash and to get non-functional ATMs normalised at the earliest.



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[Hindustani78]

A parliamentary committee had called Reserve Bank of India (RBI) Governor Urjit Patel on May 17 to answer queries on the banking scams unearthed in the last few months, sources said.

The Standing Committee on Finance, headed by Congress leader M. Veerappa Moily, on Tuesday raised several queries related to the banking sector with Financial Services Secretary Rajiv Kumar.

“We have invited the RBI Governor on May 17. We will be asking him about the scams and other banking regulations,” said a source.

Manmohan attends meeting
Former Prime Minister Manmohan Singh, who is member of the committee, attended the meeting.

Mr. Patel said recently that the RBI doesn’t have adequate powers to deal with the public sector banks.

“We would like to know what kind of powers the RBI Governor needs,” another source said, adding that regulation was an important part and that was why the Governor had been called.

When asked if the PNB fraud and ICICI Bank loan issues figured in the meeting, the source said, issues related to “all commercial banks, including ICICI Bank” were discussed.

Finance Ministry officials gave part replies to queries of the lawmakers and they have been given three weeks time to file a complete report on the questions.

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http://www.thehindu.com/business/Ec...cy-in-circulation-jaitley/article23570583.ece
Media reports talked about currency shortage in several areas in Telangana and Andhra Pradesh in the last few weeks. Similar reports are coming in from eastern Maharashtra, Bihar and Gujarat.

Union Finance Minister Arun Jaitley on Tuesday said there was more than adequate currency in circulation in the country.

The official handle of the Ministry of Finance tweeted, saying: "The Govt continues to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand. The Government would like to assure all the people that there have been adequate supply of currency notes which have met entire demand so far."

Media reports talked about currency shortage in several areas in Telangana and Andhra Pradesh in the last few weeks. Similar reports are coming in from eastern Maharashtra, Bihar and Gujarat.

Long queues for closure of FDs
Reports pointed out that banks in the two States witnessed long queues for closure of fixed deposits as well as withdrawal from saving bank accounts. They cited concerns over the proposed FRDI (Financial Resolution and Deposit Insurance) Bill and the PNB (Punjab National Bank) scam as reasons for the withdrawals.

The Finance Ministry said cash shortages were due to unusual spurt in currency demand in the last three months. "In the current month, in the first 13 days itself, the currency supply increased by Rs. 45,000 crores. This unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar," a Ministry statement said.

The Government of India, along with the Reserve Bank of India, had taken all steps to meet this unusual demand, the Ministry said.

A review of the the currency situation indicated that the temporary shortage of notes was mainly due to sudden and unusual increase in some areas, he said.

“Overall, there is more than adequate currency in circulation and also available with the banks,” Mr. Jaitely said in a tweet . “The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” he further tweeted.