Published: Wed, April 18, 2018
Economy | By Melissa Porter

Twitter Reaction over Cash Crunch Issue, People Trolled Modi Government

Twitter Reaction over Cash Crunch Issue, People Trolled Modi Government

The government is checking with banks and the Reserve Bank of India to ensure adequate supply of currency.

Minister of State for finance Shiv Pratap Shukla had earlier given a time-frame of three days to resolve the problem. The government plans to print Rs 70,000-75,000 crore worth of notes in a month.

Residents in Madhya Pradesh capital Bhopal said many ATMs have had no cash for 15 days. The Congress even questioned about the issue by asking whether it is "gross mismanagement or a deliberate move", Mr Sitaram Yechury tweeted ATMs are dry but "only party flush with cash is the BJP". Nirav Modi fled with Rs30,000 crore and the PM didn't utter a word.

Cash crunch does not only kill traders, it also brings bad news for farmers. In next couple of days, we'll have supply of about 2500 cr of Rs 500 notes per day. "I would urge public to return the excess Rs 2000 notes to banks as we have to keep the system running". Main opposition Congress and the Left parties came down on the Narendra Modi government on the cash crunch issue.

In response to the Finance Minister, KT Rama Rao, a minister in the Telangana cabinet, said that this was an issue being faced by customers for the last three months.

Vijayakumar Chief Investment Strategist, Geojit Financial Services suggested that, "This localised shortage can be addressed quickly by moving cash from places where there is cash more than necessary to meet the demand". Many states have reported that ATMs are running dry.

"To say there is a shortage of currency is not the right statement to make", Kumar said.

The ban removed 86% of the country's currency from circulation at a stroke, and threw the cash-dependent economy into turmoil for weeks.

Telangana IT and Industries Minister KT Rama Rao today expressed concern that cash shortage problem in Banks and ATMs across Telangana State has been prevailing for long time.

In a tweet, FM Jaitley said that the cash situation across the country has been reviewed and assured that adequate liquidity will be made available across the country. Currency in circulation on 4 November 2016 was Rs17.74 lakh crore.

Union Finance Minister Arun Jaitley has conceded that the country was facing a cash crunch but added that the crisis was only temporary. "The SBI chief said this was restricted to certain states where the demand has gone up, a possible reason was that the agricultural procurement season has started".

Similar statements were echoed in Uttar Pradesh's Varanasi where people said, "We do not know what or where the problem is but the common man is facing difficulty as the ATM Kiosks are not dispensing cash".

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