Cash crunch: 'Increasing printing of Rs500 notes by 4 times' assures government

Cash Crunch: FM Jaitley said "Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly"

Representational file image/PTI

New Delhi: In an attempt to pacify the people over cash-crunch issue, which has now engulfed more than half of India, Reserve Bank of India on Tuesday claimed that “there isn’t a dearth of cash in the market”. On the other hand, the government has ensured that it would increase the printing of Rs 500 notes by four times. The statement comes after government had started printing of currency notes in 3^rd shift at Madhya Pradesh’s printing press on Tuesday.

Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.

— Arun Jaitley (@arunjaitley) April 17, 2018

A massive cash crunch has been reported from various states like Madhya Pradesh, Gujarat, Uttarakhand, Bihar etc. The problem has returned over a year-and-a-half after the country last faced the same post Prime Minister Narendra Modi’s demonetisation announcement, where many people lost their lives standing in bank queues. As per reports, many people are facing problems because of dearth of cash, especially those who have marriage in their house; as cash crunch is forcing them to borrow money from someone else. As per RBI, the problem is likely to resolve in 2-3 days.