Enough cash at ATMs, but don’t overdraw money, says Shaktikanta Das

business

Updated: Feb 22, 2017 15:10 IST

Economic affairs secretary Shaktikanta Das urged Indians that they should withdraw only the money “they require”, trying to allay concerns about a cash crunch situation in the country.

“Complaints of cash out in ATMs being addressed. Request everyone to draw the cash they actually require. Overdrawal by some deprives others,” he tweeted.

Das brushed aside claims of cash shortage and said in another tweet: “Enough cash available. Logistics issues of reloading ATMs more frequently being addressed.”

Last week, finance minister Arun Jaitley said the Reserve Bank was monitoring the cash supply on a daily basis.

The government had announced the withdrawal of old Rs 500 and Rs 1,000 currency notes on November 8, 2016, with an aim to check black money, counterfeit notes and terror financing. The demonetisation drive sucked out 86% of the currency in circulation, leading to a severe cash crunch.

Following the note ban, the government and the RBI had placed several restrictions on withdrawing money from banks and ATMs, which have been gradually relaxed.

Currently, one-time withdrawal of Rs 50,000 is allowed from savings accounts, and from March 1 all restrictions on withdrawals will be removed, the RBI has announced.

“There could be a gap in refilling ATMs after banking hours. But I don’t think that there is any shortage of cash,” said a banking department official who did not wish to be named. She added that banks have adequate supply of cash to deal with demand.

Earlier on Wednesday, Das had clarified that the government has no plans to introduce Rs 1,000 notes and the focus is on increasing production of lower denomination currencies.