Enough cash available, efforts on to augment note supplies: Shaktikanta Das

Economic Affairs Secretary Shaktikanta Das said it was decided to activate all channels for dispensing cash

New Delhi, Nov 14: Allaying fears of shortage, the Finance Ministry today said there is enough cash in the system and delivery channels are being augmented across the country to help cash-starved citizens.

Giving details of the high-level meeting chaired by Prime Minister Narendra Modi late last night, Economic Affairs Secretary Shaktikanta Das said it was decided to activate all channels for dispensing cash.

With regard to rural areas, he said the cash holding limit for 1.2 lakh banking correspondents (BCs) has been increased to Rs 50,000 and banks have been given flexibility to increase this limit on case to case basis. It has been also decided to provide cash multiple times to the BCs, so that rural population is served.

Besides, supply of cash to 1.3 lakh branch post offices would be enhanced so that public can get banknotes. Together, these 2.5 lakh delivery points, mostly in rural areas, would be able to give bigger quantum of cash to the public, he added.

For the urban population, Das said recalibration of ATMs has already started and they will start dispensing the new Rs 2,000 currency notes from today or tomorrow. However, he clarified that the higher cash withdrawal limit of Rs 2,500 is only for recalibrated ATMs.

Additionally, a large number of micro-ATMs will be deployed to help people withdraw cash through debit cards. To mitigate their hardship, the RBI has started distributing high security Rs 500 notes from yesterday.

PTI