With the recent cash crunch that has left a hunch on the backs of citizens, especially those hailing from states such as Telangana, Andhra Pradesh, Karnataka, Bihar, etc., banks across the country have insisted that the cash supply has improved and the situation will be resolved by the end of the week. An official from Canara Bank, said that the situation has improved over the last 2-3 days, with ATMs replenished with cash and in the next fews days the cash supply in bank ATMs should be normal.
The sudden and recent cash crunch has left citizens hailing from the affected states quizzical on the timing of such a situation, with the elections just around the corner. According to the Reserve Bank of India, the reason behind the cash crunch was due to the string of bank holidays at the end of March, during which banks across the affected states failed to replenish their ATMs with cash. Another reason as stated by the Reserve Bank of India is that only one-fifth of the 200,000 ATMs across the country are calibrated to dispense Rs.200 notes, and out of that number, just half of them are actually dispensing Rs.200 notes. Yet another reason that has affected the cash supply in several states is because the ratio of Rs.2,000 notes that has been withdrawn from being deposited is comparatively higher – a sign that citizens are back to hoarding Rs.2,000 notes, a factor that will make the Government rue.
To ease the situation, the Reserve Bank of India has promised to increase the printing of Rs.500 notes, and almost Rs.750 billion will be printed in the next few days. Also, the RBI will increase the number of Rs.200 notes in circulation, to sort of bring about a balance of the currencies in circulation. Tending to the problem with immediate effect, State Bank of India and other public sector banks have allowed their customers to make withdrawals from POS terminals of listed merchant establishments up to Rs.2,000 – to give citizens a backup following the ATMs across the country running dry.