RBI denies cash crunch reports, says 'sufficient cash in vaults'

The Reserve Bank on Tuesday denied that there is any currency shortage and clarified that there is sufficient cash in the central bank's vaults and currency chests. Several states are facing cash shortage despite currency flow in the economy going back to the pre-demonetisation level.

The central bank in a notification said "that printing of the notes has been ramped up in all four note presses. The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. RBI is closely monitoring both these aspects."

Earlier, Finance Ministry said "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," it added.

The ministry also said that "We continue to have in stock adequate currency notes of all denominations, including of Rs 500, Rs 200 and Rs 100 to meet any demand."

Minister of State for Finance Shiv Pratap Shukla said the government has formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next 2-3 days.