Union Finance Minister Arun Jaitley, on Tuesday, said that there was more than adequate currency in circulation in the country.
Mr. Jaitley said that he reviewed the currency situation in the country and indicated that the temporary shortage in currency was mainly due to sudden and unusual increase in some areas.
“Overall, there is more than adequate currency in circulation and also available with the banks,” Mr. Jaitely said in a tweet . “The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” he further tweeted.
The official handle of the Ministry of Finance tweeted saying, “The Govt continues to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand. The Government would like to assure all the people that there have been adequate supply of currency notes which have met entire demand so far.”
Media reports talked about currency shortage in several areas in Telangana and Andhra Pradesh in the last few weeks. Similar reports are also coming in from eastern Maharashtra, Bihar and Gujarat.
Reports pointed out that banks in Telangana and Andhra Pradesh witnessed long queues for closure of fixed deposits as well as withdrawal from saving bank accounts. They cited concerns over the proposed FRDI (Financial Resolution and Deposit Insurance) Bill and the PNB (Punjab National Bank) scam as reasons for withdrawals.