Cash crunch will be resolved by tomorrow, says SBI chairman

  |   India News

A severe cash crunch still persists across various cities and states, but SBI Chairman Rajnish Kumar has assured the problem will be resolved by tomorrow. The system is currently short of cash worth Rs. 70,000 crore, a third of the overall monthly withdrawal from ATMs, says SBI. Officials have mentioned two factors: possible hoarding of Rs. 2,000 notes and printing of Rs. 200 notes.

People in several states including Delhi, Telangana, MP, Bihar, Chhattisgarh, Karnataka, Maharashtra, AP, Rajasthan and Gujarat are facing an unexpected cash crunch as ATMs run out of money. In some places, ATMs stopped dispensing more than 15 days ago. #ATM and #cashcrunch have been trending on Twitter. For the masses, it has brought back memories of demonetization, when Indians struggled due to lack of cash supply.

Among other theories being speculated, one is procurement season: payment to farmers have gone up, thus affecting supply. RBI sources said there was " higher than normal withdrawal" due to harvest festivals. Rumours about a new bill that would transfer banks' losses to depositors are also driving people to withdraw cash. However, some bank officials believe RBI is deliberately doing it to boost digital transactions.

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